Brevan Mulls Currency Fund's Future After Cutting Lead Trader

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.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...