Brexit: Major US hedge fund bets on banking jobs going to Europe

Marathon, a £10bn fund, believes many banking service sector jobs will move to Frankfurt, Paris and other EU cities

The US hedge fund is banking on the belief companies will start leaving London in the next few years (Getty)

A US hedge fund has increased its property investments in European countries it believes will benefit from banking jobs moving out of London following Brexit.

Marathon, a $13bn (£9.9bn) fund, has bought retail space, office buildings and residential homes across Europe, believing that many companies will start leaving London in the next few years.

The hedge fund has started investing in Ireland, France, Germany and the Netherlands.

These countries “have the most stable outlook and [are the] most likely to benefit from Brexit,” Bruce Richards, co-founder and chief executive of Marathon, told the Financial Times.

“Many bank service sector jobs will undoubtedly move to Frankfurt and Paris as EU rules will likely require bank employees to be domiciled within the EU when serving EU clients,” he added.

Although Marathon believes London will remain the centre for finance in Europe, it still anticipates a "mild" recession in the UK next year, City AM reported.

Founded 18 years ago, Marathon is headquartered in New York with investment offices in London and Singapore.

It was one of the eight firms selected by the US Treasury to manage the Legacy Securities Public Private Investment Program (PPIP) Fund.

PPIP is responsible for valuing and removing remove troubled assets from the balance sheet of financial institutions in the US.

The programme is one of the initiatives put forward by the Federal Reserve and the US Treasury after the financial crisis of 2008.