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

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

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

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.