Hedge fund managers find positives in Brexit vote

William Turvill
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No hedge fund managers surveyed by Preqin believe Brexit will have a negative impact on their work in the long-term (Source: Getty)

Hedge fund managers are finding positives in last month's Brexit vote, a new survey has found.

Some 31 per cent of 67 surveyed by Preqin expect a positive short-term impact from the vote to Leave the EU, and nine per cent predicted a longer-term boost.

Just 13 per cent of those surveyed anticipated a negative effect in the short-term, and none said it would have a negative impact in the longer term.

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Among hedge fund managers, 21 per cent said they will seek to make more investments in the UK over the next year, and 13 per cent longer term, after the Brexit vote. Eleven per cent plan to reduce their investments in the short-term, and eight per cent longer term.

It was a different story among fund managers, however, with 19 per cent expecting their performance to be negatively affected by the vote in the short-term and 13 per cent in the long-term. Nine per cent of the 75 surveyed expect a positive impact long-term and 13 per cent in the short term.

Elsewhere, 30 per cent of private capital investors think Brexit will be bad in the short-term for their performance, while 12 per cent think it is positive.

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Hedge fund investors were more positive, with 35 per cent saying it would be positive for performance, versus 22 per cent negative.

The report said: “The largest proportions of fund managers do not expect their performance or investment decisions to be impacted by Brexit, but hedge fund managers anticipate being able to benefit in the short term as they capitalise on market volatility.

“Investors are taking a cautious approach, with more than a quarter of investors overall expecting to invest less in the UK in the wake of the result.”

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