Sunday, 28 December 2014
Last updated 7 hours ago
Jan 23 2014 | 1:44pm ET
Brevan Howard Asset Management founder Alan Howard blamed his firm's "somewhat disappointing" returns in 2013 on market volatility and a wrong bet on European interest rates.
Brevan Howard's listed BH Macro fund returned just 2.59%, falling short of both the average hedge fund, which returned in the mid- to high-single digits, and the broader markets, which pushed the Standard & Poor's 500 Index up by more than 30%.
Howard said that stronger-than-expected U.S. employment numbers and Federal Reserve Chairman Ben Bernanke's talk of tapering the central bank's stimulus program "triggered substantial turmoil in the financial markets" that cut into Brevan Howard's early-year gains from "late May to the end of October."
Brevan Howard did profit from its long bet on the U.S. dollar and from its investments in Japan—a bet that it expects to continue this year. Howard also said the hedge fund may seek to trade on European efforts to fight deflation and in the U.S.
"We would expect the opportunity set to trade both U.S. rates and the U.S. dollar to markedly improve" in the wake of the Fed's taper announcement last year.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.