Thursday, 25 August 2016
Last updated 33 min ago
Aug 15 2014 | 8:34am ET
Brevan Howard Asset Management co-founder Chris Rokos had a very convenient change of heart about whether he planned to start his own hedge fund, the firm alleges.
Rokos is suing Brevan to be freed from a five-year non-compete agreement. But the hedge fund said that Rokos assured them at the beginning of the year that he had no plans to manage outside capital, ensuring that it would pay him $73 million in profit allocations. Less than two weeks later, he informed Brevan that he planned to get out of the non-compete.
Rokos wishes to break that agreement because it “no longer [fits] in with his current wishes, yet he still seeks to retain all financial benefits conferred on him under those agreements and to exploit the high personal profile, reputation and track record that Brevan Howard has afforded him to damage its interests,” Brevan alleges. In addition to the voiding of the non-compete, Rokos wants to be confirmed in his right to share in Brevan’s profits through 2018.
Brevan said that, had it known of Rokos’ plans, it might had withheld all or some of the $73 million. It now wants that money back.
The $37 billion firm is battling Rokos’ bid to end the non-compete, and has filed a countersuit for breach of agreement.