Product Overview

This case invites students to assess the impact that Brexit, the withdrawal of the United Kingdom from the European Union, might have on a New York-based hedge fund's portfolio and, specifically, its UK assets. The case is designed to prompt students to make market assumptions and investment hypotheses based on a combination of numerical data and qualitative information. It requires no numerical computations; instead, it asks the student to interpret both markets' short-term reactions to the Brexit vote and strategy shifts from UK and European business leaders in order to evaluate longer-term implications for the economies of the United Kingdom, Europe, and the world.

Learning Objectives

Evaluate the impact of an unexpected political event with significant economic implications such as Brexit, on the UK, European, and world economies; assess financial performance with the interpretation of stock market activity and other performance metrics; understand how trade policy and a political environment can support or hinder a nation's products and services.