The Pound’s Record New-Year Rally Veils Brexit Concerns
- Investors are focusing on short term, says Algebris’s Gallo
- Leveraged accounts have biggest pound long position since 2014
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The pound’s strongest start to a year on record has the bears running for cover.
Algebris Investments money manager Alberto Gallo abandoned his negative outlook on sterling to go long the U.K. currency versus the dollar in the fourth quarter of last year. BlueBay Asset Management LLP dropped this month its own pessimistic call to turn neutral. The pound surged 5 percent versus the dollar in January, its best run in the first month of a year in Bloomberg data going back to 1971, and 1.1 percent versus Europe’s shared currency.