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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…