Investors Said to Redeem Additional $1.4B From Brevan Howard Macro Fund

Apr 26 2016 | 10:28pm ET

Investors in beleaguered alternative asset manager Brevan Howard have reportedly redeemed approximately $1.4 billion from the company’s flagship macro hedge fund following persistent losses that have continued into the first quarter.

The Brevan Howard Master Fund, which takes positions based on broad macroeconomic trends in equities, rates and currencies, posted negative returns in each of the last two years and was down a further 0.97% in the first quarter, according to Bloomberg. A 2% loss in March reportedly wiped out the quarter’s gains. 

The fund will have until the end of June to meet the redemptions, according to people familiar with the matter. 

Total assets in the fund were $17.6 billion at the end of March, compared to roughly $27 billion two years ago, Bloomberg noted. London-based Brevan Howard as a whole manages more than $25 billion, which while an impressive number even by hedge fund standards, is still a far cry from the $40 billion the company had under management in 2013.

Macro funds have been under particular pressure for the past several months, as global markets underwent significant, and fairly correlated, volatility. Multibillion-dollar macro funds from Fortress Investment Group, BlackRock, and Bain Capital are among those that have closed or notified investors they are winding down in the past several months. 

Despite the headwinds, Alan Howard, the company’s co-founder, remarked in late January that 2016 offers “exceptional” opportunities” to generate profits due in part to the bifurcation of global monetary policy between the central banks of the U.S. on one hand and Europe, China and Japan on the other.


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