- Hedge fund said in letter Brexit more likely than odds suggest
- Most money managers expected Britian to remain, survey said
Tudor Investment Corp., the $11.6 billion hedge fund run by veteran macro-economic trader Paul Tudor Jones, told investors last week that the chances of a U.K. exit from the European Union were higher than betting odds suggested.
“We think the likelihood that a U.K. majority votes to leave the EU is far higher than current betting odds of 40 percent,” the firm said in a June 15 letter. “This probability is sufficiently high that investors need to plan for the aftermath of such a vote.”
Global markets plunged Friday after the U.K. became the first country to quit the EU, the world’s largest trading block. In a survey of macro-economic fund managers days prior to the vote, 90 percent said they expected voters to back staying in the trading bloc, according to Drobny Global Advisors LP, a macro-economic research firm.