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25th Sep 2022

Brexiteers are making millions out of the demise of the British economy

Jack Peat

Markets plunged on Friday in what was described as the ‘worst day ever’

Prominent Brexiteers are cashing in on the demise of the UK economy by taking short positions against sterling and government bonds.

Hedge fund manager Crispin Odey, who once employed Chancellor Kwasi Kwarteng as an analyst, reportedly made a killing on Friday, with his fund up 145 per cent on the back of bets against government debt.

The fund manages £4 billion in assets and has significant exposure to bets against very long-dated bonds, some as far out as 2071.

Odey had entered into a short position against UK 2061 cash bonds when yields were as low as 0.5 per cent.

They have since gone soaring up as investors demand more return for the greater risk they were taking by buying Government debt.

Elsewhere, the Times has reported that hedge-fund managers who backed Liz Truss in the Tory leadership race have cashed in on the value of the pound sliding to record lows.

“They were all supporters of Truss and every one of them was shorting the pound,” one source told the newspaper.

Sterling repeatedly fell to new 37-year lows against the dollar on Friday, slowly edging towards its all-time trough.

At its lowest point on Friday afternoon £1 could buy just 1.0896 dollars – the worst exchange rate for Britons since 1985.

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