"Brexited": The Second Wave of Selling

...will begin any day now...

ZH: June 28, 2016

"The V-Shaped Recovery is dead: Massive Redemptions Are Coming"

"Active investors considerably increased risk exposures in the week leading up to the UK referendum"

"The positioning overhang coupled with the ‘prove it mindset’ of investors now, points to further equity downside risk as well as a prolonged market bottoming process like we saw in 2011-12, rather than the v-shaped rebounds that have characterized equity markets of late (like January)."

Bookie odds of "Remain" were systematically manipulated ahead of the referendum to convey the false sense that it was a "done deal". Those bets led to systematic underhedging in global markets by Team Greedthink leading to $3 trillion of losses through Monday, and putting many trillions more at risk... 

"...it couldn't be more unfortunate that Brexit happened just five trading days before the end of the second quarter. Even the savviest of money managers would struggle to recoup the kind of losses seen over the past two sessions. And a smaller gain, or a negative return, could spur outflows from an industry already under fire."

"After a rough first quarter, hedge funds had started to recover when Brexit hit"

Active Manager equity exposure: