Hedge Funds Disagree on Britain’s Remaining in the EU

February 16, 2016 Ryan James In the News

David Cameron's official portrait from the 10 Downing Street website.

David Cameron’s official portrait from the 10 Downing Street website.

Economist Savvas Savouri at London-based Toscafund Asset Management believes that the UK would be a “better place” if it disengaged itself from the European Union. Savouri wrote his opinion in a report called “Britain Stands Up—Better to Exit European Union.”

The Toscafund analyst stated that “If the EU doesn’t want to reform we should leave it.” He believes London’s place as Europe’s foremost financial center would not be harmed by a “Brexit” since there is “no plausible alternative.” He added that neither New York or Frankfurt could replace London in this “hugely important and lucrative role.”

Not everyone in finance agrees with Savouri’s assessment. Arguments on both sides of the controversy are coming to the fore now as UK Prime Minister David Cameron has promised to hold a referendum on EU membership before the year ends.

Chief Executive Officer Stuart Gulliver of HSBC Holdings Plc said that if Britain leaves the EU he would take HSBC and its 1,000 investment bankers to Paris. Money manager Crispin Odey of Odey Asset Management wondered out loud why it makes sense to stay as a “part of Europe that keeps mangling us.” David Harding, founder of Winton Capital Management, said that it is “vital” that the UK stays in the EU.

Brexit, Crispin Odey, David Cameron, David Harding, EU,

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