Brevan Howard

Last updated

Brevan Howard
Company typePrivate
Industry Investment management
Founded2002;22 years ago (2002)
Founder Alan Howard
Headquarters
Jersey
ProductsHedge funds
AUM US$ 35-40 billion
(as of July 2023) [1]
Website brevanhoward.com

Brevan Howard (officially Brevan Howard Asset Management LLP) [2] is a European hedge fund management company based in Jersey [3] with its funds domiciled in the Cayman Islands. [4] Brevan Howard was founded in 2002 by Alan Howard, alongside four other co-founders including Chris Rokos, and is widely considered to be one of the top global macro hedge funds. [5] [6]

Contents

Brevan Howard has also been described as one of the largest "macro hedge funds" in the world with [7] [8] assets under management (AUM) having peaked at $40 billion in October 2013 [9] [10] before downsizing to $18 billion in 2016 following a period of suppressed volatility as a result of central bank quantitative easing. [11] By 2020, Brevan Howard was managing around $10 billion in investor assets across its six offices globally [12] where it returned 99%, [13] the best recorded year for the firm amid the COVID-19 global pandemic. Following a resurgence in returns and fresh investor capital, as of October 2022, the fund now manages around $26 billion in assets. [14]

Brevan Howard is known to employ traders from major investment banks, portfolio managers from competing hedge funds, and advanced quantitative analysts. According to one of the company's founding partner's, "high turnover is part of the business model" and traders are "cut" if they do not perform up to the company's standards for success. [15] [16] According to one investment consultant, Brevan Howard's standards for success in trading are so high that some traders who have been dismissed from Brevan Howard "have become stars at other firms."

History

On 29 October 2019, Brevan Howard announced that Aron Landy, the chief risk officer since 2003, would replace Alan Howard as CEO. [17] Howard is continuing to be an investment manager with the firm [18] that he co-founded in 2002 with fellow Credit Suisse traders Jean-Philippe Blochet, Chris Rokos, James Vernon, and Trifon Natsis. [5] [19] [20] The company name was created by utilizing portions of the last names of the co-founders. [15] Blochet took a "sabbatical" in 2008, returned and left the firm again in November 2009. [21] Vernon left his position as chief executive officer (CEO) in 2011 but returned to the company as group chief operating officer (COO) in September 2013. [22] [23] Another co-founder, Rokos, retired from the company in 2012. [22] [24] The company received $2 billion to manage in the global macro fund from Credit Suisse Private Bank. Under the leadership of Brevan Howard's founding partner, assets grew to $10.5 billion in 2006. [16] The company generated a 25% return in 2007 and returns from its global macro fund continued to perform well during the Great Recession. [16]

In 2010, the company moved its headquarters from London to Geneva. [20] In July 2012, the firm opened an affiliate firm in New York called Brevan Howard U.S. Investment Management LP which had about $800 million in assets under management. [20] By 2013 the company had established Brevan Howard Capital Management LP on the island of Jersey. [25] As of June 2013 it was reported to be the largest European hedge fund management firm based on its total AUM. [6] [25] An April 2013 article in the Financial News described the company as "the biggest and best-performing [hedge fund management] firm in Europe". [5] In 2015, The company reduced its workforce by about 10% due to reduced management assets and diminishing returns. [26] The fund had further losses in 2014 and 2015 and had only $14.5 billion in assets as of October 2016. [11] By 2016, the firm had reduced its assets under management (AUM) from $41 billion spread across nine funds in 2013 to an $18 billion AUM spread over three funds. [11]

Investment funds

History

In 2012, a founding partner, said the firm's overall strategy is focusing on "near-term opportunities" and establishing investment positions that are maintained for one to six months. [16] As a macro hedge fund, in 2013, the company aspires to profit as a result of "broad economic trends" and trades many types of assets including commodities and currencies. [25]

The firm set up 11 funds [27] including the Brevan Howard Master Fund (BHMF) 2003, Brevan Howard Multi-Strategy Master Fund Limited (BHMS) 2008, Brevan Howard Emerging Markets Strategies Master Fund Limited (BHEMS) 2007, Brevan Howard Credit Catalysts Master Fund Limited (BHCC) 2009, the Brevan Howard Asia Master Fund Limited (BHA) 2004, [6] the Brevan Howard Emerging Markets Local Fixed Income Fund (BHEML), [28] Brevan Howard Credit Catalysts Master Fund Limited ("BHCC"), [29] Brevan Howard Commodities Strategies Master Fund Limited ("BHCS"), [30] Brevan Howard Systematic Trading Master Fund Limited ("BHST"), [31] Brevan Howard Credit Value Master Fund Limited ("BHCV"), [32] Brevan Howard CMBS Master Fund Limited ("BHCMBS"), [33] Brevan Howard Investment Fund II - Macro FX Fund Limited ("BHMFX"), [34] The company also manages three closed-ended feeder funds, listed on the London Stock Exchange. They are: BH Global Limited (BHMG), BH Macro Limited (BHGG) [35] and Brevan Howard Credit Catalysts Limited (BHCC). [36]

Its flagship fund, the Brevan Howard Master Fund Ltd. was capped at $25 billion AUM and closed to new investors in 2012. [16] It had a $28 billion AUM as of October 2013 and was reported to be the 11th most popular hedge fund among institutional investors in the U.S. [10] As of 2013, the Master Fund had averaged a 12 percent annual gain since its inception in 2003. [10] [25] [37] After 10 years the fund reported its first annual loss of 0.8% in 2014. [38] [39] In April 2020, the fund had its best month ever, gaining 17% in March amid the ongoing market turmoil caused by the COVID-19 pandemic. [40]

Current

As of 2019, the company operates a number of funds, including two publicly-available closed-end funds, BH Global (LSE :  BHGG) and BH Macro (LSE :  BHMG). [41]

Corporate affairs

Brevan Howard describes itself as a "global alternative asset manager" and maintains offices in London, Geneva, St. Helier, Hong Kong, Singapore, Abu Dhabi, Austin and New York. [42] The company employs more than 430 people worldwide with 28 employees in its New York office [10] and more than 40 employees at its offices located on the island of Jersey. [22] [16] [43] Eighty of its employees are traders [27] that receive commissions equal to "11% to 17% of gains." [5] This segment of the employee base includes 15 traders who work at the company's Ramat Gan, Israel office [44] with 38 traders being added to the "global team" of employees in 2012. [5] Geraldine Sundstrom, joined the company in 2007 and was the portfolio manager for the Brevan Howard Emerging Markets Strategies Master Fund Limited. [10] [45] Sundstrom left the company in 2014 when the fund she managed was shut down. [46]

The company operated offices in Singapore from 2007 to 2014. [3]

Brevan Howard has made a variety of philanthropic contributions to the Imperial College Business School (ICBS). The company donated £20.1m over eight years to fund a financial economics research centre. [47] As of 2013 the firm had donated £1.5m to ICBS's, Alan Howard Scholarships for Energy Futures. [47] In 2012, BrevanHoward pledged a £250,000 donation to the ARK Bentworth PrimaryAcademy. [48]

Related Research Articles

A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to improve investment performance and insulate returns from market risk. Among these portfolio techniques are short selling and the use of leverage and derivative instruments. In the United States, financial regulations require that hedge funds be marketed only to institutional investors and high-net-worth individuals.

<span class="mw-page-title-main">D. E. Shaw & Co.</span> U.S.-based investment management firm

D. E. Shaw & Co., L.P. is a multinational investment management firm founded in 1988 by David E. Shaw and based in New York City. The company is known for developing complicated mathematical models and computer programs to exploit anomalies in financial markets. As of December 1, 2023, D. E. Shaw has $60 billion in assets under management, including alternative investments and long strategies.

<span class="mw-page-title-main">Bridgewater Associates</span> U.S. based investment management firm

Bridgewater Associates, LP is an American investment management firm founded by Ray Dalio in 1975. The firm serves institutional clients including pension funds, endowments, foundations, foreign governments, and central banks. As at December 2023, Bridgewater ranks as the fourth most profitable hedge fund manager in history by absolute dollar returns. The firm began as an institutional investment advisory service, graduated to institutional investing, and pioneered the risk parity investment approach in 1996.

<span class="mw-page-title-main">Citadel LLC</span> American hedge fund and financial services provider

Citadel LLC is an American multinational hedge fund and financial services company. Founded in 1990 by Ken Griffin, it has more than $63 billion in assets under management as of June 2024. The company has over 2,800 employees, with corporate headquarters in Miami, Florida, and offices throughout North America, Asia, and Europe. Founder, CEO and Co-CIO Griffin owns approximately 85% of the firm. As of December 2022, Citadel is one of the most profitable hedge funds in the world, posting $74 billion in net gains since its inception in 1990, making it the most successful hedge fund in history, according to CNBC.

<span class="mw-page-title-main">Global macro</span>

Global macro is an investment strategy that leverages macroeconomic and geopolitical data to analyze and predict moves in financial markets. Large-scale or "macro" political and economic events can disproportionately impact certain sectors, such as the energy, commodity, and currency markets, over others. The strategy typically employs forecasts and analysis of interest rate trends, international trade and payments, political changes, government policies, international relations, and other broad systemic factors.

BH Macro Limited is a large British investment company dedicated to the global fixed income and foreign exchange markets. Established in 2007, the company is a "feeder" fund into a fund managed by hedge fund Brevan Howard. The chairman is Richard Horlick. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Alan Howard is a British billionaire hedge fund manager and co-founder of Brevan Howard Asset Management LLP. In February 2013, Forbes listed him as one of the 40 highest-earning hedge fund managers. In 2014, he was ranked 53rd on the UK's Sunday Times Rich List. According to Forbes, as of 2019, Howard's net worth is $1.6 billion.

Moore Capital Management, LP (MCM) is a global investment management firm headquartered in New York, New York. In September 2018, MCM had $10.2 billion in total assets under management.

<span class="mw-page-title-main">Clarium Capital</span> Defunct American investment management and hedge fund company

Clarium Capital Management LLC was an American investment management and hedge fund company pursuing a global macro strategy. It was founded in San Francisco in 2002 by Peter Thiel, co-founder of PayPal and early investor in Facebook. Its assets under management grew to $8 billion in 2008, after which a series of unprofitable investments and client redemptions shrank that to about $350 million as of 2011.

<span class="mw-page-title-main">Winton Group</span> British investment management firm

Winton Group, Ltd is a British investment management firm founded by David Harding. In the United States, Winton is registered with the Securities and Exchange Commission as an investment advisor and with the Commodity Futures Trading Commission as a CTA, and is authorised by the Financial Conduct Authority in the UK. The company trades on more than 100 global futures markets in a wide variety of asset classes and on global equity markets. The firm was launched with $1.6 million in 1997, reached a peak of $28.5 billion in assets under advisement, before dropping to $7.3 billion by late 2020. Winton Group has six offices around the world: London, New York, Hong Kong, Shanghai, Sydney, and Abu Dhabi.

Steven Edward Drobny is an American hedge fund advisor and published author. He is the founder of Clocktower Group, a consulting and investment advisory business focused on fundamental discretionary global macro and commodity hedge fund strategies. Drobny is the author of The Invisible Hands: Top Hedge Funds on Bubbles, Crashes and Rethinking Real Money and Inside the House of Money: Top Hedge Fund Traders on Profiting in the Global Markets

<span class="mw-page-title-main">Millennium Management, LLC</span> American hedge fund

Millennium Management is an investment management firm with a multistrategy hedge fund offering. It is one of the world's largest alternative asset management firms with over $70.2 billion assets under management as of October 2024. The firm operates in America, Europe and Asia. As of 2022, Millennium had posted the fourth highest net gains of any hedge fund since its inception in 1989.

Pine River Capital Management is an American asset management firm based in Minnetonka, MN. The firm traded its investors funds using stocks, fixed income, derivatives and warrants.

Christopher Charles Rokos is a British billionaire hedge fund manager. He is the founder of macro hedge fund Rokos Capital Management and a former founding partner of Brevan Howard Asset Management.

<span class="mw-page-title-main">Quantedge</span> Singaporean-American alternative investment asset manager

Quantedge Capital is an alternative investment asset manager based in Singapore and New York City. It manages over US$3 billion under its flagship Quantedge Global Master Fund primarily on behalf of high-net-worth individuals, family offices and institutions.

Rokos Capital Management LLP (RCM) is a British Alternative Investment Fund Manager (AIFM). RCM is headquartered in London, with offices in New York,Washington DC and Singapore. It is authorised and regulated by the UK Financial Conduct Authority. The firm has around 200 employees.

Pantera Capital is an American hedge fund and venture capital firm focused on digital assets headquartered in Menlo Park, California. The fund specializes in cryptocurrencies and blockchain technology. It is one of the largest digital asset funds in the world by managed assets.

Eisler Capital (Eisler) is a multi-strategy hedge fund management firm headquartered in London, founded in 2015 by former Goldman Sachs partner Edward Eisler. Originally established as a global macro fund, it transitioned to a multi-manager investment approach in 2021.

<span class="mw-page-title-main">Jain Global</span> Hedge fund based in New York City

Jain Global is an American investment management firm headquartered in New York City with additional offices in Europe and Asia–Pacific.

References

  1. ↑ "The largest managers of hedge funds (P&I Sep 2019)".
  2. ↑ Teitelbaum, Richard (12 January 2012). "Brevan Howard Proves Master of Hedge Funds With Four in Top 100". Bloomberg.
  3. 1 2 Hu, Bie (19 September 2016). "Brevan Howard, Caxton Expand in Asia Amid Hedge Fund Woes". Bloomberg. Retrieved 18 December 2016.
  4. ↑ Griffiths, Tony (6 October 2010). "The HFMWeek 50 most influential people in hedge funds". HFMWeek. Archived from the original on 9 October 2010. Retrieved 5 August 2011.
  5. 1 2 3 4 5 "Alan Howard". Financial News. 2 April 2013.
  6. 1 2 3 McIntosh, Bill (July 2012). "Europe 50" (PDF). The Hedge Fund Journal.
  7. ↑ Jones, Sam (16 July 2013). "Return of the blueblood macro hedge funds". Financial Times. Retrieved 20 September 2013.
  8. ↑ Moodley, Kiran (1 September 2011). "How have hedge fund elite fared in the summer turmoil?". Citywire Wealth Manager.
  9. ↑ Laurence Fletcher (19 March 2013). "Faith in policymakers may be 'serious error': Brevan Howard".
  10. 1 2 3 4 5 Goldstein, Matthew; Ablan Jennifer; Wachtel, Katya (10 October 2013). "Top global hedge fund Brevan Howard takes emerging markets hit". Reuters. Retrieved 18 October 2013.
  11. 1 2 3 Fortado, Lindsay (5 October 2016). "Brevan Howard founder says fund will stay open despite losses". Financial Times. Retrieved 18 December 2016.
  12. ↑ "Brevan Howard ramps up business development effort with quartet of hires". hedgeweek.com. 9 September 2020. Retrieved 16 October 2020.
  13. ↑ "Brevan Howard Hedge Funds Gain Up to 99% in Best-Ever Year". www.bloomberg.com. Retrieved 1 November 2022.
  14. ↑ "One of the World's Biggest Hedge Funds to Charge Fee That's Fueling Talent War". www.bloomberg.com. Retrieved 1 November 2022.
  15. 1 2 Teitelbaum, Richard & Cahill, Tom (31 March 2009). "Brevan Howard Shows Paranoid Survive in Hedge Fund of Time Outs". Bloomberg. Retrieved 7 October 2013.
  16. 1 2 3 4 5 6 Williamson, Christine (1 October 2012). "Brevan Howard attracting institutions". Pensions & Investments.
  17. ↑ Fletcher, Laurence. "Brevan Howard's new chief on the revered hedge fund's inner workings". Archived from the original on 12 July 2020.
  18. ↑ "Brevan Howard founder Alan Howard to step down as CEO". Reuters. 30 October 2019. Archived from the original on 30 October 2019.
  19. ↑ Bill McIntosh (July 2012). "Europe 50" (PDF). The Hedge Fund Journal.
  20. 1 2 3 Callahan, Neil & Westbrook, Jesse (12 October 2012). "Brevan Howard Said to Consider Leasing New London Office Space". Bloomberg News. Retrieved 27 September 2013.
  21. ↑ Dealbook. "Co-Founder of Brevan Howard to Leave Firm". The New York Times.
  22. 1 2 3 Brewer, Kirstie (5 September 2013). "Vernon returns to Brevan Howard". HFMweekonline.
  23. ↑ Jones, Sam (25 July 2011). "Brevan Howard co-founder to leave firm". Financial Times.
  24. ↑ Westbrooke, Jesse (17 August 2012). "Brevan Howard Loses Third Founder as Rokos Said to Leave". Bloomberg.
  25. 1 2 3 4 Westbrook, Jesse (5 September 2013). "Brevan Howard Co-Founder Vernon Returns After Two Years". Bloomberg. Archived from the original on 11 November 2013. Retrieved 6 October 2013.
  26. ↑ Kishan, Saijel (6 November 2015). "Brevan Howard Is Said to Cut 50 Jobs After Assets Decline". Bloomberg. Retrieved 16 December 2016.
  27. 1 2 "Alan Howard: Hard work pays off for 'the Stakhanov of finance". Financial News. 2 April 2013.
  28. ↑ Bill, McIntosh (March 2013). "Brevan Howard Emerging Markets Local Fixed Income Fund". The Hedge Fund Journal.
  29. ↑ "Brevan Howard Proves Master of Hedge Funds With Four in Top 100". Bloomberg L.P.
  30. ↑ "Brevan Howard Opens $200 Million Commodities Fund to Investors". Bloomberg L.P.
  31. ↑ "Brevan Howard Systematic Trading Master Fund: BH-DG Systematic Trading - Risk.net". June 2012.
  32. ↑ "Brevan Launches New Credit Fund With $20M Minimum - FINalternatives".
  33. ↑ "Brevan Howard Buying CMBS Sees 60% Gains for Teachers: Mortgages". Bloomberg L.P.
  34. ↑ Morningstar Global Documents
  35. ↑ Smith, Justin (11 November 2008). "BH Global and BH Macro announce secondary listing in Dubai". Business Intelligence Middle East.
  36. ↑ Chandler, Beverly (9 November 2011). "BHCC offers listed diversification in difficult markets". Opalesque. Retrieved 13 March 2014.
  37. ↑ Taub, Stephen (25 January 2013). "After tepid 2012, Brevan Howard founder forecasts strong year for macro funds". Institutional investor's Alpha.
  38. ↑ Johnson, Miles (7 January 2015). "Flagship Brevan Howard fund reports first annual loss" . Retrieved 6 February 2017.
  39. ↑ Johnson, Miles (7 January 2015). "Flagship Brevan Howard fund reports first annual loss". Financial Times.
  40. ↑ "Brevan Howard Hedge Fund on Track for Record Month With 17% Gain". BloombergQuint. Retrieved 17 April 2020.
  41. ↑ "He Was Once a Macro God. Now Alan Howard Wants to Be More Than That". Institutional Investor. Retrieved 15 March 2020.
  42. ↑ "Brevan Howard". Brevan Howard. Retrieved 15 December 2024.
  43. ↑ Westbrook, Jesse (20 November 2012). "Brevan Howard on Hiring Spree Makes Comeback in New York". Bloomberg. Retrieved 27 September 2013.
  44. ↑ Eytan Avriel (22 February 2010). "The way the big boys bet". Haaretz .
  45. ↑ Milken Institute, Biography Archived 14 March 2014 at the Wayback Machine . Retrieved 13 March 2014
  46. ↑ Westbrook, Jesse (11 February 2014). "Brevan Said to Shut Emerging Markets Fund After Losses". Bloomberg. Retrieved 18 December 2016.
  47. 1 2 Bradshaw, Della (11 March 2013). "Brevan Howard gives £20.1m to Imperial College". Financial Times.
  48. ↑ "Headmaster as Chair of the Local Governing Body of ARK Bentworth Primary Academy" (PDF). 19 June 2012.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.