The Bank of England (BoE) is in “La La Land” Edouard De Langlade, the founder of EDL Capital said in an interview on Monday and will be forced to act sooner rather than later to stabilise the UK’s currency and bond markets, according to a report by Bloomberg.
The Bank of England (BoE) is in “La La Land” Edouard De Langlade, the founder of EDL Capital said in an interview on Monday and will be forced to act sooner rather than later to stabilise the UK’s currency and bond markets, according to a report by Bloomberg.
De Langlade’s macro hedge fund has retained a fifth of its short positions against sterling after taking profits following the pound’s dramatic plunge against the dollar on Monday morning as markets reacted to Chancellor Kasi Kwarteng’s tax-cutting ‘mini-budget’. And the fund is now betting against UK stocks in expectation of higher interest rates, which De Langlade believes could eventually hit more than 10%.
According to an investor document, EDL managed $857 million at the end of last month and had gained 11.6% through August, with this month’s trading reportedly adding more than three percentage points to the firm’s gains.
