Brevan Howard Shuts Main Fund to New Cash as Fortunes Improve
(Bloomberg) -- Brevan Howard Asset Management has stopped accepting new cash into its two biggest multi-manager funds after the firm’s record year of performance swelled the money pools.
Assets in the Brevan Howard Master Fund, its main strategy, have more than doubled since the start of last year to more than $7 billion, and the money manager wants to control the size to maintain returns, according to people with knowledge of the matter. The firm has also closed the Brevan Howard Alpha Strategies Master Fund to new investment for similar reasons, said the people, who asked not to be identified as the information is private.
The move marks a change of fortunes for the macro trading firm, which up until three years ago was fighting to stem an exodus of client money after several years of mediocre returns. Total assets had collapsed to about $6 billion from more than $40 billion in 2013. They have since risen to about $16 billion, one of the people said.
A spokesman for the Jersey, Channel Islands-based investment firm declined to comment.
Brevan Howard, under Chief Executive Officer Aron Landy, is in the middle of transforming itself into a broader financial-services operation. The firm has given its star traders their own money pools to run, offered co-investment opportunities to clients and created entities such as fund services business Coremont, which gives back office support to external managers for a fee.
Macro investment firms such as Brevan Howard are benefiting from increasing interest as volatile markets and fears about inflation give rise to trading opportunities. Investors, who were still pulling money as recently as last year, poured $5.6 billion into funds following macro strategies in the first five months this year, according to data compiled by eVestment.
Brevan Howard’s flagship gained 27.4% last year in its best annual performance since it started trading in 2003, while the Alpha Strategies fund rose 15.4%.
The two funds are run by a group of traders following strategies ranging from relative value, fixed income and currencies trading to bets on volatility. The main fund’s capital is managed by traders including Howard himself as well as Fash Golchin, Alfredo Saitta and Minal Bathwal.
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