Brevan Howard Paid Partners 270 Million Pounds Last Year
Brevan Howard Asset Management LLP paid its partners as much as 269.8 million pounds ($436 million) in the 12 months ended in March, more than double the amount it paid them a year earlier, after the hedge fund’s investment performance beat rivals.
The highest-paid partner, who wasn’t identified, got 78.9 million pounds, up from 64.8 million pounds in the year earlier, according to a filing by the London-based fund posted Dec. 22 on the U.K. Companies House website. Brevan Howard had 49 designated members during the period, meaning each partner received an average pay of as much as 5.5 million pounds, the filing showed,
Brevan Howard’s Master Fund, the firm’s biggest hedge fund, with more than $25 billion of assets, gained 12 percent in 2011. Competing macro funds, which trade currencies, interest rates and bonds to try to take advantage of global economic trends, declined 7.4 percent on average, as they were tripped up by the euro-area sovereign-debt crisis and slowing growth in Asia.
Officials at Brevan Howard, which manages a total of $39 billion, declined to comment.
Hedge funds earn money from fees to manage clients’ assets and for positive investment performance. Brevan Howard, Europe’s second-largest hedge fund based on assets, made 371.9 million pounds in fees in the year ended March 31, compared with 236.8 million pounds a year earlier.
The Master Fund has advanced about 3 percent this year through Dec. 14, according to investors. The firm has been hiring credit traders in 2012, including Goldman Sachs Group Inc.’s Wayne Leslie and Credit Suisse Group AG’s Josh Bertman, as the Master Fund trails its historical gains.
Alan Howard, 49, founded the hedge fund in 2002 with four other traders from Credit Suisse’s proprietary fixed-income trading desk. Howard, whose personal wealth was estimated at 1.4 billion pounds by the Sunday Times in April, relocated in 2010 to Geneva from London after the U.K. government announced plans to raise taxes on top earners.
BlueCrest Capital Management LLP, Europe’s third-biggest hedge fund, with $32 billion of assets, made 502 million pounds in fees for all of 2011, according to a Companies House filing in September. Winton Capital Management LLC, the fourth-biggest, with $28 billion of assets, generated 351 million pounds of fees last year, the hedge fund said in an October filing. Europe’s biggest hedge fund is Man Group Plc (EMG) with $60 billion of assets.
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