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In the week ending 01 July, 2016, in Europe, a majority of commentators expect that Brexit will have long lasting impacts on the financial markets and global growth. George Soros warned that the Brexit has ‘unleashed’ a crisis in the financial markets similar to the 2008 global financial crisis. Ratings agencies Fitch and S&P 500 downgraded UK’s credit rating after the Brexit vote.

According to the London Times, a number of smaller hedge funds are expected to report that they have been wiped out by the volatility we saw in currency markets during the early hours of Friday morning after the vote. Many apparently had removed all currency protection after the private exit polls painted a convincing picture that the UK would vote to remain part of the EU – precisely the reason that pound/dollar surged to 1.5 late on the evening before the vote.

However, data from Credit Suisse showed that hedge funds in general appear to have avoided crippling losses arising from the vote. Bridgewater Associates warned that future referendums on leaving the European Union could cause even greater turmoil than the volatility around Britain's exit. Several emerging hedge fund managers who run global macro, FX, quantitative and market neutral strategies offered mixed reactions to Brexit. Meanwhile, UK hedge funds are looking to restructure their funds out of Ireland and Luxembourg with third party management companies reporting a surge in interest.

Several hedge funds reported strong performance from the Brexit turmoil, including Schonfeld Strategic, Winton Capital, Odey Asset Management, Saba Capital, George Soros, Stan Druckenmiller, Quadratic Capital Management.

Interestingly, computer-dri......................

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