July 7, 2016 / 8:30 AM / 3 years ago

Two British hedge funds out of 67 surveyed by Preqin may leave country

LONDON (Reuters) - Two British hedge fund firms out of 67 surveyed by data provider Preqin are considering moving operations out of the country after the vote to leave the European Union on June 23.

London plays host to $472 billion in hedge fund assets, almost 3.5 times the size of the total continental European hedge fund industry, said Preqin.

In the survey conducted between June 30 and July 4, 17 percent of hedge fund managers were unsure whether they would move operations while 80 percent did not anticipate moving.

Business uncertainty did not deter 31 percent of firms suggesting the vote would bump up returns over the next year, perhaps unsurprising given that hedge funds claim to operate best in volatile markets where they can buy and borrow stocks.

While the pound fell to a 30-year low against the U.S. dollar and the S&P 500 lost 5.4 percent, hedge funds lost 0.18 percent on average, showed Hedge Fund Research data.

Reporting by Maiya Keidan, editing by David Evans

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