Libya Worries, Reduced Risk Save Brevan Fund From Japan Losses

Mar 23 2011 | 2:20pm ET

Events on the other side of the globe helped Brevan Howard Asset Management skirt the big losses suffered by other hedge funds in the wake of the earthquake and tsunami in Japan this month.

Brevan told investors that it cut its Equity Strategies Fund's net exposure to between 0% and 20% from 30% to 50% in February due to the unrest in the Middle East, especially the fighting between Libyan rebels and Libyan leader Muammar Qaddafi. As a result, the $569 million was protected from the stock-market swoons that followed the disaster in Japan, which triggered a nuclear emergency and which claimed an estimated 20,000 lives.

"In light of the increasing uncertainty, both the net and gross exposure was significantly reduced," Brevan wrote to clients this week.

Odey Asset Management was not so fortunate: The London-based firm lost 5.6% through the middle of March, erasing its gains in January and February, Bloomberg News reports.

Odey wasn't alone: The aftermath of the Japanese tragedy hit Cerberus Capital Management, Paulson & Co., Sparx Group and Tudor Investment Corp., as well.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.