Preqin Special Report: Impact of Brexit on Hedge Funds
2016 has been a challenging year for hedge fund managers: investor concerns surrounding the performance of the asset class have led to many difficulties in both retaining capital and raising fresh assets. Compounding outflows and performance concerns, a number of macroeconomic events have made for a challenging environment in which to generate alpha for investors. Among these events was the referendum on the UK’s membership of the EU, held on 23 June 2016. Five months on and uncertainty still prevails regarding the timing and terms of the UK’s secession from the EU. Preqin surveyed 276 hedge fund managers and 108 hedge fund investors, as well as utilized data from Preqin’s Hedge Fund Online, to analyze the changing sentiment of the hedge fund industry surrounding the ‘Brexit’ vote and how the performance of hedge funds has been affected by this event.