Brevan Howard Turns Profitable After Biggest Gain Since 2011

Brevan Howard Asset Management’s main hedge fund, which has seen billions of dollars withdrawn this year, gained 5.6 percent in the first 18 days of November, according to an investor letter.

The gain erased this year’s loss for the $12.7 billion hedge fund, turning it profitable with a return of 2.9 percent, the document seen by Bloomberg showed. A spokesman for the investment firm, run by billionaire Alan Howard, declined to comment.

The turnaround follows volatility in currencies, equities and bond yields sparked by Donald Trump’s surprise victory in the U.S. presidential election earlier this month. The return puts the fund on track for its best month since August 2011, when it gained 6.2 percent, according to another investor letter.

The hedge fund, which bets on macroeconomic trends, has seen assets decline from $19 billion at the start of the year as investors asked for their money back following two years of losses in which low interest rates crimped macro managers’ ability to make money. The fund was down 2.7 percent in the first 10 months of the year.

Brevan Howard stopped charging management fees on new investments by existing clients in the master fund and a $1.8 billion multistrategy fund, a person said in September. Peers including as Caxton Associates, Tudor Investment Corp. and Och-Ziff Capital Management also trimmed fees amid lackluster performance.

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