Macro hedge fund Harmonic Capital Partners LLP bought the pound about six weeks after the U.K.’s June 23 vote to part ways with the European Union. The fund has lost money on this bet, but it’s not about to give up now.
Chief Investment Officer Patrik Safvenblad said Harmonic Capital is sticking to the position, which is held mostly against the euro, because it sees sterling’s fair value as much higher than current levels. A stronger growth and inflation outlook for Britain compared with the euro area also suggests relative gains for the U.K. currency, he said.
“We were clearly too early on this trade,” Safvenblad said in an Oct. 24 phone interview. “But it is looking better every day now.” He declined to disclose the loss made on the position…
This Hedge Fund’s Contrarian Pound Long May Soon Find Company
