Brevan Howard Hedge Fund Suffers $1.1 Billion in Outflows

Brevan Howard Asset Management’s main hedge fund had an estimated $1.1 billion in net outflows in October as investors continued to pull money after losses, according to documents reviewed by Bloomberg News.

The Brevan Howard Master Fund managed $12.7 billion at the end of October, down from $13.7 billion a month earlier. The fund gained 0.7 percent during October, the documents show. A spokesman for Jersey, Channel Islands-based Brevan Howard, run by billionaire Alan Howard, declined to comment.

The investment firm, which follows macro-economic trends to bet across asset classes, is suffering withdrawals after its main hedge fund lost money for two successive years as low interest rates and central-bank policy crimp macro managers’ opportunities to make money. The fund, which managed $19 billion at the end of last year, lost 2.7 percent through October this year compared to a 0.3 percent increase in the HFRI Macro Total Index.

Brevan Howard has received redemption requests worth an additional $2 billion this year, Business Insider reported last month, citing people with knowledge of the matter.

Hedge funds are facing a widespread backlash this year from their clients on poor returns and high fees, forcing some of the industry’s largest firms to cut charges. Investors have pulled about $5.7 billion from macro funds in the first nine months of the year, according to data provider eVestment.

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