Hedge Fund Managers See No Long-Term Brexit Damage in Survey

(Bloomberg) -- Global market turmoil triggered by Britain's vote to exit the European Union will have no long-term effect on investments in the U.K., according to hedge fund managers surveyed by Preqin.

Almost a quarter of the 67 money managers questioned by the research firm from June 30 to July 4 expect a positive effect, while none said Brexit will be negative. Over the short-term, 31 percent of respondents said the decision will have a positive influence on their funds' performance and 13 percent considered it a reason for concern.

The shock vote in favor of Brexit on June 23 erased trillions of dollars from the value of global stock markets. While some hedge funds such as Alken Fund Absolute Return Europe and H2O Vivace lost money last month, the industry gained 0.2 percent, according to the HFRX Global Hedge Fund Index.

About 20 percent of the hedge-fund managers surveyed said they will raise investments in the U.K. over the next 12 months, while 11 percent said they will reduce investments in the short term, the survey showed.

To contact the reporter on this story: Nishant Kumar in London at nkumar173@bloomberg.net. To contact the editors responsible for this story: Neil Callanan at ncallanan@bloomberg.net, Michael Shanahan, Ross Larsen