Hedge fund Brevan Howard has had a solid start to 2018 after losing almost $4 billion in assets in 9 months

Britain's Palace of Westminster is silhouetted against the setting sun, London

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Britain’s Palace of Westminster is silhouetted against the setting sun, London
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Thomson Reuters

  • Brevan Howard, one of the world’s largest hedge funds, lost almost $4 billion in assets in nine months, according to an analysis of client documents by Business Insider.
  • The firm’s flagship fund returned 2.65% this year through January 26, according to a person familiar with the numbers.

Brevan Howard’s assets have dropped by about $4 billion in nine months, according to an analysis of client documents by Business Insider. But it’s had a solid start to 2018.

As of the end of March 2017, the firm managed $13.3 billion. By year end, it had just $9.5 billion.

The loss continues an ongoing trend at Brevan, which for years has suffered from investor outflows amid underperformance. At its peak, the firm managed about $40 billion.

The firm’s flagship macro fund, Brevan Howard Fund Limited, dropped 5.4% last year, its worst-ever year since it launched in 2003, documents show. The fund manages about $5.3 billion.

It’s not clear from the documents how much of the asset drop was related to performance or client withdrawals.

The firm’s flagship fund, however, might be turning itself around. The fund gained 2.56% YTD through January 26, according to a person familiar with the figures.

From January 1 through January 26 of this year, these are the firm’s returns, according to a person familiar with the numbers:

  • Multi-Strat: +3.11%
  • AS Macro, a fund run by Alfredo Saitta: +6.7%
  • BH Securitisation: +0.19%
  • BH Asia: +1.77%
  • Greek equity fund: +12.34%

Macro strategies have struggled for years, but that hasn’t stopped some managers from spinning out on their own – and attracting fresh capital from clients.

Chris Rokos and Ben Melkman, both star traders at Brevan, launched their own shops in recent years. And Greg Coffey, previously of GLG Partners and Moore Capital, is targeting a $2 billion comeback in the coming weeks, Business Insider earlier reported.