Thursday, 30 June 2016
Last updated 6 hours ago
Jun 13 2013 | 11:16am ET
Brevan Howard Asset Management is parting ways with its top currency manager and may close his US$570 million fund.
Luke Ding will leave Brevan Howard as part of the firm's biannual review. His Macro FX Fund, which managed about US$1 billion last year, has struggled to post consistent returns, with annualized gains of just 1.4% since its debut four years ago. The fund is up about 1.6% this year, but lost 2.3% last year.
Brevan Howard is still mulling the fund's future. Following Ding's exit, it still have four traders; those traders could be laid off or reassigned internally, although Reuters reports that two or three of them will leave the firm. Brevan Howard plans to speak with the Macro FX Fund's investors before deciding whether to pull the plug on it.
About seven other traders at Brevan Howard are set to leave the firm as part of the review, during which the firm seeks to jettison underperforming managers. Brevan Howard has about 80 traders on staff.
Ding joined Brevan Howard in 2007 and spent his first two years trading for its flagship fund. Prior to joining the hedge fund, he was a currency trader at Merrill Lynch.