What does Brexit mean for UK hedge funds?

Passporting rights chief among concerns

Mike Sheen
clock • 2 min read

The future of the UK's $427bn hedge fund industry is mired in uncertainty, with 78% of British fund managers believing they need to reevaluate their business models in anticipation of Brexit, according to research commissioned by State Street.

UK-based hedge funds, which account for about 69% of total European hedge fund assets, face important questions about their future, such as the potential loss of passporting rights and single market access, according to State Street's Insitutional Survey for April 2017, Brexometer.  Bullish sentiment from Theresa May on the pursuit of a "hard Brexit" and a lack of clarity on the UK's relationship with the EU once it has left the union has made preparations more difficult for managers. "We are facing the unknown in regards to Brexit," said Steve Long, chief risk officer at hedge fund A...

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