Brevan Emerging-Markets Fund Said to Cut Risk on Losses

Brevan Howard Asset Management LLP’s $2.7 billion emerging-markets hedge fund sold positions and cut risk by more than half after it lost 11 percent this year amid a market rout, said two people with knowledge of the matter.

Brevan Howard lowered the value at risk, or VaR, for the Emerging Markets Strategies Master Fund by 50 percent in May and at least 30 percent more this month after losses climbed to almost $300 million this year, said the people who asked not to be identified because the firm is private. VaR, an estimate of potential trading losses, can be cut by selling investments and reducing leverage.