Promise Keeper: Brevan Plans $2 Billion In Distributions From Flagship

Sep 20 2011 | 2:29pm ET

One of the world's largest hedge funds doesn't want to get any larger.

Brevan Howard Asset Management is following other industry giants, such as Caxton Associates and SAC Capital Advisors, in seeking to limit its growth. But unlike those firms, which have simply restricted or cut off new investment, Brevan plans to return about US$2 billion from its flagship hedge fund to investors.

The Brevan Howard Master Fund currently manages about US$26.9 billion and is up 11% this year. But the firm had previously assured investors that it would keep the pool at about US$25 billion.

"It has nothing to do with the opportunity set we see in the markets," CEO Nagi Kawkabani told Bloomberg News. "We made a promise to our investors, and we feel we have to do the things that we told them we are going to do. Otherwise, we lose credibility."

It's not clear how Brevan will pay out the distributions. But a source told Bloomberg that is was not likely to force investors who haven't submitted redemption requests to take some of their money back.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...