Hedge fund manager Crispin Odey is one of several in the industry profiting from the pound nosediving, which he predicts may have further to run.
His Odey Asset Management is among several hedge funds, according to the Financial Times, which are shorting the currency which hit a 37-year low yesterday of US$1.03 before rebounding to US$1.08.
Odey, one of the biggest donors to the Conservative party in recent year, believes it could go even lower.
“I don’t think you can start getting bullish on sterling,” Odey told the FT.
Odey is also shorting UK gilts, some dated as far out as 2071, which had already been tumbling before the plunge seen since last week's Bank of England decision and Kwasi Kwarteng's mini-budget resulting in the Odey fund being up 145% so far this year.
Friday’s emergency budget was the catalyst for the weak pound after the new Chancellor announced a raft of tax cuts.
While a weak pound is seen as a negative, it will be have some positive effects for certain companies, with shares in Burberry Group PLC (LSE:BRBY) and Smurfit Kappa Group plc (LSE:SKG) rising as they are among those seen benefitting.
For UK exporters, softer sterling makes products cheaper for overseas buyers.
Investors in British assets and property will also find they are getting better value for money, which could mean that takeovers of London-listed companies by foreign buyers accelerate even further.
However, as has already been seen, firms importing to the UK suffer from a falling pound, as it makes raw materials more expensive.
It could also mean fewer foreign workers are attracted to arrive in the UK, not ideal at a time when Liz Truss is reportedly looking to loosen immigration rules in an attempt to boost the economy.