Brevan Howard Asset Management LLP, Europe’s second-largest hedge fund, is considering leasing a new office in London, according to a person with knowledge of the matter.
Brevan Howard is in negotiations to rent space at 8 St. James’s Square, a 105,000-square-foot (9,720-square-meter) property under development in London’s West End, said the person, who declined to be identified because the negotiations are private. Brevan Howard currently leases 38,000 square feet of space about a mile away at 55 Baker Street.
Brevan Howard is considering the expansion after it outperformed most other hedge funds last year. Its assets under management rose by $2.5 billion to $36.7 billion in the first six months of 2012. St. James’s Square is home to BP Plc’s headquarters, private clubs and the Chatham House think tank.
An affiliate of Green Property Ltd. is developing the St. James’s Square site, which it expects to be completed by late 2013, according to its website. Planning was sought to allow as much as 105,000 square feet of office space, according to a December 2010 filing with the City of Westminster, the local governing authority.
Brevan Howard officials declined to comment. Alan Howard, 48, founded Brevan Howard in 2002 with four other fixed-income traders from Credit Suisse AG.
The firm’s Master Fund, with more than $25 billion, gained 12 percent last year. Macro hedge funds, which trade currencies, bonds, commodities and interest rates based on global economic trends, fell 7.4 percent in 2011 on average, according to data compiled by Bloomberg. The Master Fund is up about 2 percent this year, according to investors.
Brevan Howard announced in July that it had opened a New York-based investment firm that would manage money on behalf of the Master fund. Brevan Howard U.S. Investment Management LP, the New York affiliate, oversees about $800 million, according to an August regulatory filing.
Howard relocated from London to Geneva in 2010. Reuters reported earlier today that the hedge fund was considering leasing space at the St. James’s Square site.