Hedge fund Brevan Howard Asset Administration has been spending an terrible lot recently. There’s the three-quarters of a billion {dollars} going to its new commodities push. There’s the addition of Tekmerion Capital Management. And there’s its second effort at offshoring issues from Blighty, with $10 billion of its $30 billion-plus in property beneath administration being, uh, managed from its “new Switzerland,” Abu Dhabi.
Factor is, although, IT hasn’t been making very a lot recently: IT’s flagship fund fell 2.1% final yr and is already down 3% this yr, whereas its Alpha Methods fund—now its largest—is down 2.2% on the yr, perilously near giving again all of its features from final yr. One thing’s acquired to present. And that one thing is about two dozen traders, roughly one in 10 of its whole buying and selling drive.
The Jersey, Channel Islands-based agency eradicated a batch of merchants for underperformance as a part of its twice-a-year assessment…. A few of Brevan Howard’s departing workers targeted on so-called macro buying and selling, a type of investing that makes use of authorities bonds, currencies and derivatives to revenue from world financial developments, the folks stated. Others labored in systematic buying and selling, which depends on pc fashions and technical evaluation of chart patterns to find out when to purchase and promote property.
Brevan Howard Cuts About 10% of Traders Amid Hedge Fund Losses [Bloomberg]