Wednesday, 20 August 2014
Last updated 3 hours ago
Dec 22 2011 | 11:01am ET
Brevan Howard Capital Management's partners are in line for a major payday this year. But they had to do with much less last year, the hedge fund said in a regulatory filing.
The US$37 billion hedge fund paid out no more than £128.3 million (US$200 million) to its partners in the 12 months ended in March. That's a 79% haircut from the partner payout in the previous year.
The payout was split among an average of 52 partners during the period. The highest-paid partner, presumably founder Alan Howard, although Brevan did not disclose that information, received £64.8 million. That partner earned £267.3 million in the prior year, more than all of the partners combined in the year to March.
The serious pay cut is not much of a surprise: 2010 was the worst year in Brevan's history, with its flagship hedge fund managing a return of just 1%, while the average hedge fund rose double-digits. The lower returns—the Brevan Howard Master Fund returned 19% in 2009—meant that fees fell from £736.3 million to £236.8 million.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note