Brevan Howard, the not very successful London based macro hedge fund, is letting go one of its senior portfolio managers. Luke Ding managed a portfolio of $570 million with the Brevan Howard Investment Fund II Macro FX Fund, but is reportedly leaving because of the fund’s ailing returns, reports Harriet Agnew and Katie Martin for Financial News.
Take a look at the firm’s April returns here.
Brevan Howard is contemplating whether to keep the Macro FX Fund open or not. It is not clear if Luke Ding’s staff will be assigned to other roles or they will leave the firm. Until August of last year, the fund managed $1 billion, and in less than a year Macro FX Fund has lost almost half of its value.
Brevan Howard Hires But Is Merciless About Returns
Brevan Howard Investment Fund II Macro FX Fund was up 1.5 percent for the year until May 22, according to returns from Hedge Weekly. Brevan Howard’s flagship Master Fund is up 8.7 percent YTD through May 24. While the Master Fund accounts for half of the Brevan Howard’s assets, BH has been down in its other strategies like Emerging Markets Fixed Income, down 1.95 percent till May 22. Brevan Howard Emerging Market Strategies, in which the fund manages $2.7 billion, is down 4.32 percent through May 24.
Brevan Howard has done better in the credit space—Credit Catalysis is up 5.2 percent in the same period. However Credit Value Fund has done much better with a 10.3 percent return to April but the fund manages only $293 million. Brevan Howard Asia Fund with $1.9 billion is also up 5.3 percent.
Brevan Howard has a practice of closing off underperforming operations, and it has previously shut down reinsurance, Indian equity and other small funds. Helped by the decreasing trend of banks dipping into risky trades, Brevan Howard hired 38 traders when it opened its New York office. BH hired Don Carson and Josh Bertman from Credit Suisse Group AG (NYSE:CS), Giles Coppel from Tudor Investment Corp, and Vinay Pande from Deutsche Bank, last year.