WHEB Commentary

George Latham

UK votes to Brexit


For the second time in recent UK election history the polls have been misleading.  Over the past week, as well as opinion polls firming, both the betting and financial markets have been indicating a vote for remain with increasing confidence. This turns out to have been misplaced.  As a result, both stock and currency markets are experiencing significant volatility this morning as it becomes clear that the UK has voted to leave the European Union.

Clients will be concerned amidst the news of market gyrations and sharp currency moves.  In the short term at WHEB we are likely to do very little trading on our underlying investments.  As a genuinely global equity manager, our portfolio has relatively low level of direct exposure to UK listed stocks (7.9% as of 23rd June 2016), with more than 60% of the portfolio invested in US stocks.  Although global markets are likely to move lower today, the weakness of sterling against the US dollar would have a beneficial impact on the value of US portfolio holdings when translated back into GBP.  This effect is likely to dampen some of the impact on overall portfolio values.

Apart from the general risks to the macro economy from the referendum result, the implications at the stock level are less clear as we do not yet know what form a Brexit will take.  As long term investors we will continue to evaluate the risks and opportunities for all the holdings in our portfolio and stocks across our wider universe on a case by case basis with an eye on longer term fundamental value.

Recent posts

  • Greta gets clean away
  • Impossible whoppers and impossible valuations
  • The social determinants of health
  • Bringing buildings out of the background
  • It may be a cliché but it is true; prevention is better than cure
  • Money at Work: Bringing Impact to Life
  • Why we do need experts
  • Prosperity with Purpose: positioning portfolios in a carbon-challenged world
  • Why we invest in – Varian; using innovation to fight cancer
  • Fire and protest
  • Archive

  • September 2019 (1)
  • August 2019 (2)
  • July 2019 (3)
  • June 2019 (2)
  • May 2019 (3)
  • April 2019 (1)
  • March 2019 (1)
  • February 2019 (2)
  • January 2019 (3)
  • December 2018 (1)
  • November 2018 (2)
  • October 2018 (4)
  • September 2018 (2)
  • August 2018 (4)
  • July 2018 (1)
  • June 2018 (1)
  • May 2018 (1)
  • April 2018 (2)
  • March 2018 (2)
  • February 2018 (1)
  • January 2018 (1)
  • December 2017 (3)
  • November 2017 (1)
  • July 2017 (3)
  • June 2017 (1)
  • May 2017 (1)
  • April 2017 (1)
  • February 2017 (2)
  • November 2016 (1)
  • August 2016 (1)
  • July 2016 (1)
  • June 2016 (1)
  • May 2016 (1)
  • April 2016 (2)
  • February 2016 (1)
  • December 2015 (1)
  • November 2015 (3)
  • October 2015 (1)
  • September 2015 (1)
  • July 2015 (2)
  • April 2015 (2)
  • February 2015 (2)
  • December 2014 (2)
  • November 2014 (3)
  • October 2014 (4)
  • August 2014 (1)
  • July 2014 (3)
  • June 2014 (1)
  • April 2014 (2)
  • March 2014 (2)
  • February 2014 (3)
  • January 2014 (4)
  • December 2013 (4)
  • October 2013 (5)
  • September 2013 (3)
  • July 2013 (4)
  • June 2013 (2)
  • May 2013 (4)
  • April 2013 (2)
  • March 2013 (4)
  • February 2013 (6)
  • January 2013 (2)
  • December 2012 (3)
  • November 2012 (1)
  • October 2012 (4)
  • September 2012 (2)
  • August 2012 (1)
  • July 2012 (3)
  • June 2012 (3)
  • May 2012 (6)
  • April 2012 (4)
  • March 2012 (5)