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. 

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