Brevan Howard’s Largest Fund Said to Rebound After 2014 LossWill Wainewright
Brevan Howard Asset Management’s largest hedge fund is up 3.6 percent this year after posting its first loss in 2014, said a person with knowledge of the situation.
The Brevan Howard Master Fund, which trades on macro-economic trends, rose for the period to March 6, though it lost 0.6 percent last month, said the person, who asked not to be identified because the details are private. Macro hedge funds averaged gains of 2.8 percent in the first two months of 2015, according to data provider Hedge Fund Research.
The Master Fund avoided losses after the Swiss central bank unexpectedly scrapped its cap on the franc in January, a person with knowledge of the situation said at the time, aiding its rebound this year. The Swiss currency soared as much as 41 percent against the euro after the decision, causing losses worth hundreds of millions of dollars at banks and hedge funds.
Billionaire Michael Platt’s BlueCrest Capital Management lost money on one of its funds after the move, people familiar said at the time. Marko Dimitrijevic’s Miami-based Everest Capital immediately closed its largest fund after losing money, while London-based Comac Capital, started in 2006 by Colm O’Shea, returned investor money after losing 8 percent.
Billionaire Alan Howard, who co-founded Jersey-based Brevan Howard in 2002, didn’t answer an e-mail seeking comment. Most of Brevan Howard’s $27 billion is in the Master Fund, which lost 0.8 percent in 2014, the first annual decline since starting in 2003. It returned 3.9 percent in 2012 and 2.7 percent in 2013, down from 12 percent in 2011, according to an investor letter.
Chris Rokos, another of Brevan Howard’s co-founders, is starting a hedge fund backed by his former firm later this year after settling a lawsuit against it in January. Bankers serving the industry expect it to be the largest new hedge fund in Europe in 2015.