Brexit Trade Against The Crowd, Mean Reversion Opportunity

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” Brexit trade

Earlier in April, a CIBC research piece advised institutional investors...