Hedge funds generated huge profit by placing bets against the British pound

The Sunday Times reported that hedge funds in the City of London generated huge profits by betting against the British pound prior to the nation's mini fiscal budget last week.

One of the hedge firms identified was Crispin Odey's Odey Asset Management in London, whose primary fund is said to have increased by 145% this year as a result of shorting British government bonds, per sources at Reuters.

According to a Monday article by Bloomberg, Edouard de Langlade, the manager of the macro hedge fund EDL Capital, gained money by betting against the pound and British companies in anticipation of another increase in interest rates.

On Monday morning, the pound USDGBP, -1.03% is trading at $1.0738, down 1% against the greenback.

According to the Evening Standard, Labour Treasury Secretary Tulip Siddiq has asked the Financial Conduct Authority to look into whether fiscal policy material was leaked before Thursday's statement. She is a member of the government's opposition party.

Stephen Diggle, a former manager of a volatility hedge fund, stated to Bloomberg that he was purchasing the pound to finance UK investments. Diggle is renowned for winning $2.7 billion on profitable wagers made during the Great Recession.