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Market Neutral Hedge Fund Factors Breezed Through Brexit Plunge

  • Momentum trade sees its best two-day increase in five years
  • In flight to quality, short leg pays in long-short portfolios

Market neutral was the way to go after Brexit.

Strategies that employ offsetting bets to orient managers not around market moves but the performance of investment factors such as momentum and dividend yield were major winners as markets buckled following the U.K. referendum. Long-short momentum, in particular, posted some of its best relative returns in years.