Brevan Howard Said to Extend Loss With 0.9% Decline Last Monthby and
Main hedge fund has dropped 3.4% this year through September
Assets fell to $14.2 billion in August as clients pulled money
Brevan Howard Asset Management’s main hedge fund, which has been bleeding assets, extended losses for the year with a 0.9 percent decline in September, according to two people with knowledge of the matter.
The Brevan Howard Master Fund, which oversaw $14.2 billion as of August, is down 3.4 percent in 2016, said the people, who asked not to be identified because the information is private. The fund fell almost 2 percent in 2015 and 0.8 percent in 2014 -- when it had almost twice the assets -- according to investor reports. A spokesman for the London-based firm declined to comment.
Billionaire Alan Howard’s fund has suffered redemptions along with other big macro firms in the face of persistently low interest rates in the U.S. and Europe, prompting the managers to cut fees. Brevan Howard stopped charging management fees on new investments from existing clients in the master fund and a $1.8 billion multistrategy fund, a person with knowledge of the matter said last month.
The firm, which bets on bonds, currencies, shares and commodities, had charged a 2 percent management fee and a reduced rate for clients who tied up their money for longer. The firm will still take a 20 percent cut of profits, the person said.
The hedge fund grew too large and will now cap its assets at $15 billion, Howard said in an interview with the Financial Times published Wednesday. The fund’s assets climbed to as much as $27 billion in 2014.
Howard said he has no plans to shut the fund.