Brexit Trade Against The Crowd, Mean Reversion Opportunity

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Mark Melin
Published on
Updated on

With regards to the Brexit trade, certain hedge fund managers appear to enjoy taking the “against the crowd thesis.” While opinion polls in the United Kingdom remain relatively close on the Brexit question, and major institutions continue to engage in frightening contingency planning, an odd development is taking place that was evidenced in a recent Capital Economics research piece: those wagering, putting there money where their mouth is, are betting on a positive outcome. Thusfar, the long Brexit trade appears to be working In early April CIBC recognized the ultimate counter-trend trade, here is the formula for an “against the crowd”…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.