Tudor Warned Clients Last Week to Prepare for U.K. to Exit EUby
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.