Brevan Howard Suffers $3B in Redemptions As Macro Funds Stall

Nov 4 2015 | 9:46pm ET

European hedge fund firm Brevan Howard Asset Management has reportedly suffered a decline in assets of approximately $3 billion in the nine months through the end of September, the latest major macro fund manager to suffer redemptions in the wake of challenging market conditions.

The losses bring Brevan’s AUM down to $24.8 billion, according to Bloomberg, which cited a person familiar with the situation and investor reports. The asset drop is exclusive of the $5 billion that departed Brevan Howard when affiliate manager DW Partners transitioned out in January. 

The investor redemptions come as Brevan’s main macro fund sits at +0.2% for the year to date after booking its first-ever annual loss last year. In comparison, the average multi-strategy macro hedge fund is down 0.71%, according to Hedge Fund Research’s HFRX Macro: Multi-Strategy Index, Brevan Howard partner Vinay Pande, who managed the Brevan Howard Strategic Macro Fund, is reportedly leaving the firm along with his New York-based team.

Inflows, meanwhile, have been on the order of $2 billion so far this year, the Bloomberg article noted. Brevan managed approximately $40 billion in mid-2013. 

Macro funds have been under severe pressure this year amid significant market volatility. Fortress Investment Group is closing its $2.3 billion macro business after booking nearly two years of losses, while Bain Capital is winding down its $2.2 billion macro fund. 

On the flip side, former Brevan Howard star trader and co-founder Chris Rokos has had little trouble raising money for his new macro fund, cresting $1 billion in AUM last week only a month after receiving approval from U.K. financial regulators. 

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