European and UK-focused hedge funds incurred steep losses in June, following the Brexit vote. However, both have more than recovered those losses in the third quarter and by the end of October had year-to-date gains of 0.99% and 1.91%, respectively.
Financial information provider Preqin surveyed 276 hedge fund managers and 108 investors in November to see how their views on Brexit had changed.
The firm found that investors were far more upbeat in the intervening five months with three-quarters planning to invest at the same level in the UK over the long term, while 81% said they would maintain their current level of investment in EU-based hedge funds.
However, although the majority of UK-based hedge fund managers did not anticipate changing location (70%) this proportion has shrunk since July (80%).
Furthermore, a greater number of firms were uncertain of their position then they were five months ago.
Preqin also said the UK-based industry had $478 billion (€445.6 billion) of assets under management, while EU (ex-UK) assets were $125 billion.
©2016 funds europe
