Brevan Howard Raising Money For New Liquid Alternative Funds

May 4 2016 | 8:03pm ET

Brevan Howard Asset Management is reportedly branching out into the liquid alternatives business through two vehicles that offer daily liquidity and no performance fees.

The funds are part of an effort spearheaded by former UBS executive Roberto Hoornweg, according to a Bloomberg article citing unidentified persons familiar with the matter. Named the Brevan Howard Dynamic Global Investment Fund and Brevan Howard Dynamic U.S. Investment Fund, the funds reportedly began trading late last year with internal capital and are now raising money. They had combined assets of $151 million at the end of February, Bloomberg reported.

Liquid alternatives have grown quickly into a nearly $800 billion market as individual investors clamor for low-cost access to the sophisticated alternative investment strategies typically reserved for institutional or high net worth individuals able to meet the high minimums and liquidity restrictions. Despite concerns that such instruments may be placing a liquid wrapper around underlying investments that are fundamentally illiquid, growth in the segment has continued largely unabated.

Brevan Howard’s interest in liquid alternatives is likely to be at least partially rooted in shoring up assets. Known primarily as a macro shop, the London-based fund manager’s flagship Brevan Howard Master Fund has suffered from two years of poor returns and a tumbling asset base that has dropped from a peak near $40 billion in 2013 to under $25 billion at the end of the first quarter. 


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

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

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of