Wednesday, 23 July 2014
Last updated 5 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…