Short-Selling U.K. Hedge Fund Cashes In on Chaos
Marshall Wace has declared a massive profit this year.
Marshall Wace’s LLP reported profits of £258 million. That’s a pretty nice payday for all of its 17 partners. The firm reported a turnover of £803 million at the end of February 2019. That figure is up sharply from the £ 647 million it had in 2018, according to The Guardian.
The hedge fund manages roughly £36 billion. It’s been making a significant number of bets against British companies in a time of economic challenges for the nation. The ongoing Brexit saga continues to generate increased uncertainty about the country’s relationship with the world’s largest trade bloc – the European Union.
Marshall Wace Shorts the United Kingdom
According to the Guardian, Marshall Wace bet against at least 33 British firms. It bet £52 million against broadcasting firm ITV. The hedge fund took another £66 million short position against Pearson, the education publishing firm. It also targeted fashion retailer Asos with a £14 million short position.
The massive windfall is a boon for Marshall Wace partners. The Guardian estimates that each member of the LLP will earn £14 million. However, the report forecasts that more senior leaders at the firm will receive a higher payout.
Paul Marshall and Ian Wace founded the hedge fund in 1997. They are both politically connected and have fortunes north of £500 million, according to the Economic Times. Despite their long-time business partnership, both men fall in different camps over the future of Britain. Wace reportedly donated money to the campaign for England to remain in the European Union. Marshall, however, was a large donor to the exit campaign.
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