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"Brexit" Means Financial Freedom

Written By Alex Koyfman

Posted October 27, 2015

Recent surveys show that the majority of Britons — including the nation’s wealthiest hedge fund managers — support Brexit, a campaign urging Britain to leave the EU behind.

The Brexit campaign (which seemed a long shot just a few months ago) is slowly gaining steam in the wake of Europe’s migrant crisis and the economic mess that is the European Union.

Already-billionaire hedge fund managers stand to make millions more per year should Britain decide to exit, and a handful are openly supporting the “Vote Leave” initiative.

Crispin Odey, a billionaire founding partner of Odey Asset Management, is one of the most prominent supporters of “Vote Leave,” which would allow investors and businessmen to detour Brussels regulators.  

According to analysis by the London-based Independent newspaper, freedom from the European financial regulatory regime means that hedge funds — which specialize in high-risk, short-term investments — would save about £250 million a year.

Sir Michael Hintze, the fourth-richest hedge fund boss in Britain, denies claims that Brexit will lead to international trade shut-outs: “Do I really think that people would stop trading with us if we go outside the Eurozone? I don’t think so.”

As it stands, Prime Minister David Cameron has been given an ultimatum. Despite his claims for renegotiation to fix the EU, he has been consistently vague about the changes he wants and how he plans to enact them. Just last week, fellow government officials demanded an exact list of demands to be produced by November.

It appears that, should Cameron fail to enact radical change, a number of leaders in Parliament will vote to leave.

The majority of Brexit supporters believe the EU has become too bureaucratic and costly. This has led to ineffectiveness and a reduction of power in the hands of national governments. The idea of freedom from EU law becomes even more appealing, as Britain will be able to secure its own trade deals with other important countries — like China, India, and the U.S.

Britain would also be able to focus on domestic concerns, freeing itself from the obligatory £350 million every week to Brussels. Instead, Brexit could lead to funding innovation in scientific research or new industries.

EU regulations also dictate how Britain handles issues like illegal immigration, employment law, and health and safety. The EU determines Britain’s role in international institutions and limits the country’s influence on free trade and international markets.

Breaking away from these regulations will grant Britain the freedom to determine its own financial future and crawl out from underneath the excessive regulations imposed by Brussels.

Conservative Party members have called on the U.S. to support Brexit, despite the Obama administration’s support for the European Union.

Former British Defense Secretary Liam Fox says that the Obama administration supports the European Union because it is “large, corporatist, statist and therefore in line with their general economic and philosophical approach.”

However, it’s more in the interest of American investors to have an independent Britain on the world stage. Brexit would benefit more than just British hedge funders.

One of the most important transatlantic financial connections is between London and Wall Street, yet the EU seeks to limit the freedoms of London as a financial hub. Brexit would keep London a center of world finance to invest in the United States, and vice-versa.

We should be seeing this debate come to a head in just a few weeks. Should Britain decide to exit the EU, American investors could be seeing some lucrative opportunities in the future.

Fortune favors the bold,

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Alex Koyfman

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His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.