Brevan Howard said to start low-cost, liquid-fund business

Brevan Howard said to start low-cost, liquid-fund business
The move marks its push into the liquid alternatives funds market that has grown to $784 billion at the end of the first quarter.
MAY 04, 2016
By  Bloomberg
Brevan Howard Asset Management LLP is raising cash for two new money pools that offer daily liquidity and don't charge a performance fee as the firm diversifies its $20 billion hedge fund business, a person with knowledge of the matter said. The funds are part of a new unit led by Roberto Hoornweg, the former UBS Group AG executive who joined Brevan Howard in 2014, the person said, asking not to be identified as the information is private. The move marks Brevan Howard's push into the liquid alternatives funds market that has grown to $784 billion at the end of the first quarter, compared with $697 billion a year ago, according to data from Morningstar Inc. Investors favor these low-cost products because they provide more transparency on how exactly they make money and allow clients to exit or invest more frequently than hedge funds. Brevan Howard Dynamic Global Investment Fund and Brevan Howard Dynamic US Investment Fund invest across asset classes and started trading with capital from the firm led by billionaire Alan Howard in December, according to the funds' website. The two funds had combined assets of $151 million at the end of February and offer daily liquidity, the website shows. A spokesman for Brevan Howard declined to comment. Brevan Howard, best-known for running hedge funds that bet on macroeconomic trends, has seen its assets decline from $40 billion in 2013 after two years of successive declines in its flagship product. The Brevan Howard Master Fund closed the first quarter down almost 1% after losing 2% in March, according to a company website. Investors in Brevan Howard Asset Management have asked to pull about $1.4 billion from the firm's main hedge fund, two people with knowledge of the matter said last month, as investors flee the industry at the fastest pace since the financial crisis.

Latest News

Roughly three-fifths of Americans agree on higher taxes for large corporations, higher-income households
Roughly three-fifths of Americans agree on higher taxes for large corporations, higher-income households

Pew survey reveals slight majority consensus on tax rates, but views splinter based on political alignment and income levels.

The Fed's going to cut rates
The Fed's going to cut rates

While the Federal Reserve's decision to hold interest rates steady in March was widely expected, it's the reactions from financial professionals that provide a more nuanced picture of the central bank's approach.

Ontario Pension Fund revamps PE business in light of global risk
Ontario Pension Fund revamps PE business in light of global risk

The pioneering member of Canada's Maple Eight is stepping back from its go-it-alone private equity approach as a drought in deals and Trump's trade war prompt a rethink.

Raymond James, RBC reel in UBS advisors managing over $690M in assets
Raymond James, RBC reel in UBS advisors managing over $690M in assets

The firms' latest additions in Florida and Nevada come as a strategic change at UBS raises risk of advisor defections.

Assetmark debuts new advisor succession planning program
Assetmark debuts new advisor succession planning program

The new program offers opportunities and events structured for rookies, next-gen advisor leaders, and soon-to-exit veterans.

SPONSORED Beyond the all-in-one: Why specialization is key in wealth tech

In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies