Brevan Howard to Start $750 Million Fund Run by Trader Group

(Bloomberg) -- In the latest revamp of Brevan Howard Asset Management, billionaire co-founder Alan Howard is planning to start a hedge fund that will be run by a group of his traders.

The firm will launch the Brevan Howard Alpha Strategies Master Fund next month with $750 million, according to a statement on Wednesday. Spokesmen for Brevan Howard didn’t respond to messages seeking comment.

Howard has been overhauling his firm after years of middling performance prompted investors to bolt. In the past year, Brevan Howard has started funds run by its money managers that focus on interest rates, volatility and Greek stocks. It’s allowing traders to run their own funds after firm assets slumped about three-quarters from a peak of $40 billion four years ago. The move is a strategy shift at a firm where a top executive once said that running multiple funds was a “distraction.”

Brevan Howard has started to stage a comeback this year with its main fund gaining 8.5 percent in the first half, while Howard posted a 37 percent jump in May at a new fund that he started last year and solely manages. That fund returned about 44 percent in the first five months of the year.

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