Brevan Howard's $24 billion fund gains in Nov but record run still at risk

[December 06, 2014]  By Nishant Kumar
 
 LONDON (Reuters) - Hedge fund manager Brevan Howard saw its main "macro" fund claw back gains in November after a torrid year for the strategy, an investor letter showed, but the $24 billion fund could yet end an 11-year winning run.

The macro fund, which like others in the sector bets on major economic trends across a range of asset classes including stocks, bonds and currencies, gained 0.86 percent in November, according to a letter to investors seen by Reuters.

That left it down 0.73 percent for the year, after losing money in eight of the last 11 months. The fund, named the Brevan Howard Fund Ltd, has not lost money in a calendar year since its launch in 2003.

The annual return of a hedge fund is closely watched by investors in the $3 trillion industry and is a key factor in any decision to stay invested or withdraw money as part of annual portfolio rejigs.

A spokesman for Brevan Howard, one of the world's biggest hedge fund firms, declined comment.

Macro funds as a whole gained an average of 3.6 percent through November this year, data from industry tracker Eurekahedge showed.

Brevan Howard has grown into a hedge fund powerhouse since its launch and its main fund even made 20 percent in 2008 during the global financial crisis.

The last three years have been less profitable, however, as the fund gained 2.7 percent in 2013 and 3.9 percent in 2012.

The firm had seen its assets under management fall to $34.3 billion by the end of October, from $37 billion earlier in the year, a court document and second letter to investors seen by Reuters showed.

Among its other funds, the firm was forced to shut its emerging markets hedge fund earlier this year after it ran up losses, while it is also closing a $631 million commodities fund after it fell 3.5 percent in November, taking its year-to-date loss to 7.6 percent.

The firm has also been in the spotlight due to its legal battle with former star trader Chris Rokos over the enforcement of a five-year non-compete agreement.

(Editing by Simon Jessop and David Holmes)

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