Brevan Howard's Payouts to Members Shrink 40% as Fee Income Dips

(Bloomberg) -- Brevan Howard Asset Management LLP’s U.K. unit paid its members an average of 2.3 million pounds ($2.9 million) in the 12 months through March, according to Bloomberg calculations based on a filing to Companies House. That’s a drop of about 40 percent from a year earlier as fee income declined.

Key Insights

  • The calculation is based on the hedge-fund firm paying a total of 54.6 million pounds in compensation to members, the number of which averaged 24.
  • That’s down from payouts totaling 106.6 million pounds in the year-earlier period, when there were an average of 28 members.
  • The compensation figure includes salaries, bonuses and profit sharing, with the payout to individuals varying according to their performance.
  • Fee income almost halved to 66 million pounds.
  • A spokesman for the Jersey-based company declined to comment.

Digging Deeper

  • Brevan Howard is recovering from years of mediocre returns in its main hedge fund. The master fund, which has seen assets decline to about $2.7 billion from $28 billion in 2013, gained almost 12 percent last year through November, according to a letter to investors.
  • Years of outflows saw firm-wide assets plunge to about $6.6 billion as of the end of October, from more than $40 billion in 2013.
  • In a bid to turn things around, co-founder Alan Howard has started his own fund to make riskier bets and allowed his top managers to run their own pools again.

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