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.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.