Hedge Funds

Hedge fund Caxton gained 2 percent in Brexit vote aftermath - source

LONDON (Reuters) - New York-based global macro hedge fund firm Caxton Associates made gains of 2 percent on Friday after Britain voted to leave the European Union, a source told Reuters on Wednesday.

Caxton, founded in 1983 by Bruce Kovner, manages $8 billion in assets and is run by Chairman and Chief Executive Officer Andrew Law, who had supported Britain remaining in the EU.

Law signed a letter from business leaders backing Britain’s EU membership and gave 200,000 pounds ($269,400.00) to the effort, according to the Britain Stronger In Europe campaign.

The Sunday Times Rich List ranks Law as the eleventh richest hedge fund manager in Britain with a personal wealth of 425 million pounds.

The source did not say how Caxton had notched up its positive performance during Friday’s market turmoil, when the pound fell 10 percent and hit a 31-year low and stocks plunged.

But data showed hedge funds generally performed relatively well and Caxton joins fellow macro hedge fund Brevan Howard in posting a positive performance on the day.

Macro hedge funds, which trade big picture macroeconomic bets in a a variety of markets including currencies and rates, averaged a decline of 0.55 percent on Friday, while hedge funds generally lost 0.18 percent.

By comparison, London’s FTSE fell 3.2 percent and the pound fell 10 percent against the dollar.

It was not clear how Caxton fared as markets staged something of a comeback this week.

($1 = 0.7418 pounds)

Editing by Simon Jessop and Alexander Smith