Brevan Howard Master Fund Said To Suffer Fourth Consecutive Monthly Decline In June

Jul 6 2017 | 9:27pm ET

The flagship hedge fund at London-based Brevan Howard reportedly lost money for the fourth straight month in June.

Brevan’s $8.2 billion Master Fund returned -1.5% for the month, bringing its first half performance to -5.2%, according to a Bloomberg article citing an investor letter. The year-to-date tally is the worst six-month start to a year since the fund launched in 2003, the article added.

In comparison, macro hedge funds as tracked by Hedge Fund Research’s HFRX Macro/CTA Index lost 0.41% in June and are down -0.75% for the year through June. The U.S. equity market as represented by the S&P 500, meanwhile, gained more than 8% during the first half of 2017.

Many macro hedge funds, which speculate on long-term economic trends using global equity, bond, currency and commodity markets, have struggled in the current low-volatility environment despite the sea change in U.S. interest rate direction.

Macro funds have traditionally been popular among investors during such trend shifts, and this year has been no exception: they’ve raised $13.8 billion, the most of any main strategy, so far this year through May, Bloomberg noted citing data from eVestment. How long such enthusiasm remains in the face of weak performance remains to be seen.

Brevan Howard’s Master Fund, which had nearly $28 billion in AUM in 2013 and more than $19 billion in December 2015, performed poorly in 2014 and 2015 but returned +3% last year.

Brevan Howard was co-founded by Alan Howard and Chris Rokos in 2002 and manages assets on behalf of more than 300 institutional investors around the world.

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