Brexit Vote Spurs $10 Billion Halcyon to Gear Up for Europe Bets

  • Firm will allocate ‘meaningfully’ over the next two years
  • ‘I wouldn’t go crazy long right now,’ CEO tells conference

John Bader.

Photographer: Jacob Kepler/Bloomberg

Halcyon Capital Management is gearing up to put money to work in Europe, betting that the U.K.’s vote to exit the European Union will spur more distressed investment opportunities.

The firm, which has roughly $10 billion in assets, will probably allocate to Europe “meaningfully over the next year or two,” Chief Executive Officer John Bader said Wednesday at the Benjamin Graham Conference in New York.

While the U.K. will get through the so-called Brexit, the divorce will be harder on the rest of Europe, he said. That will create more volatility and mispricings, thereby creating opportunities in distressed debt and value stocks, he said at the conference hosted by the New York Society of Security Analysts.

“I wouldn’t go crazy long right now, I’d have to be crazy,” said Bader, whose firm oversees hedge funds, bank loan strategies and other investments. “But I’m getting ready and I’m lining up capital to be in a position to do that.”

Global markets fell into a frenzy last week after the June 24 decision which stunned the world. Equities lost about $3.6 trillion in market value and the pound plunged to lows not seen since 1985.

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