Hedge Funds Survive Brexit

From Reuters

UK voters’ surprise decision to leave the European Union roiled markets on Friday, but hedge funds appear to have avoided crippling losses, according to market data and people familiar with fund performance.

brexitMoney managers were positioned relatively defensively coming into the vote, meaning they had reduced the amount of capital exposed to market turbulence, and even used the resulting sell-off as a buying opportunity, according to a report from Credit Suisse’s prime brokerage division late on Friday. “I don’t want to say it’s a non-event, but we’re not seeing panic,” said Eric Siegel, head of hedge fund investments at Citi Private Bank. “It’s just a bad day in the market.”

Hedge funds that bet on or against European stocks were hit hardest on Friday, with most losing between 2 and 4 percent, two investors familiar with the numbers said.  Read more on Reuters