While it is still too early to tell whether a Brexit would be successful, Gibb said the firm has exposure to UK-listed stocks within its European long-short strategy. But, he pointed out, many of the companies’ earnings come from overseas markets.
As a result, he said, there will be opportunities on both the long and the short side to take advantage of valuation distortions should a Brexit happens.
According to Gibb, the firm’s funds are currently positioned constructuvely with about 40% in the net long book, this means that if there was a significant market correction, that would cause them short-term challenges, “but we are accustomed to such challenges and can move the balance sheet quite quickly to take advantage of flexibility.”
