Hedge funds see profits from Brexit

CTA's posted positive returns in the first two days following the EU referendum.

Hedge funds and commodity trading advisors (CTAs) saw positive returns from Britain’s vote to leave the EU, according to Societe Generale Prime Services.

According to the bank’s CTA Index, 90% of the programmes it tracks witnessed profits by the end of Friday, and 80% of short term traders were positive.

This continued on Monday, with 75% of CG CTA Index funds posting positive results.

“CTA strategies have weathered the first two days of uncertain markets following the EU referendum results very well, benefiting from diversification across asset classes and positioning,” says James Skeggs, global head of alternative investments consulting at Societe Generale Prime Services

“Investors in these strategies will be feeling reassured that they have delivered non-correlated returns during this challenging period.”

Skeggs also notes short term strategies are well positioned to take advantage of market volatility in the coming months.

The SG CTA Index, which tracks the performance of hedge funds and CTAs, is up 2.81% year-on-year, with short term trading strategies is up 6.26%.