Brevan Howard Master Fund packed a gain of 3.27 percent in April, doubling its year to date gains to 6.63 percent. April recorded the macro fund’s largest gain in four months. The Master fund booked gains on macro equity trading and European interest rates while incurring minor losses in volatility trading and U.S. interest rates. Brevan Howard had a particularly good run in April, where several funds posted a sizeable return. BH Global Limited (LON:BHGG), the fund feeder, experienced a 1.6 percent increase in NAV in April.
Brevan Howard Asia Fund also recorded a decent gain of 1.96 percent in April. The fund continued to gain from Japanese equity positions and interest rate trades in AUD, JPY and Korean won. Brevan Howard Credit Catalysis Master Fund was also up 1.1 percent in April, with most of the gains from asset backed securities and some from corporate debt positions. The Systematic Trading Master Fund was another big gainer, up 2.75 percent in April. The Credit Value Master Fund was also up 4.45 percent over the same period.
Brevan Howard Continues to Lose in Emerging Markets
Not surprisingly, the Commodity Strategies Master Fund recorded the largest detraction of 3.36 percent. Brevan Howard continued to lose in its emerging markets’ focused funds—Emerging Markets Strategies Master Fund was down 0.35 percent while Emerging Markets Local Fixed Income Fund was down 1.2 percent.
In the monthly commentary, BH calls this quarter a soft patch in U.S. growth where fundamentals will improve slowly. The fund thinks that the Fed will not cut back on its fiscal stimulus in a big way, especially if such an action threatens to jeopardize the weakly growing economy. BH notes the low inflation rate of 1.1 percent in Germany, a record high unemployment in the Eurozone and weak PMI manufacturing data. The fund points out that all of these contributors paint a picture of struggling growth in the Eurozone area. In the case of Japan, BH thinks that the country has to show real success through increased inflation rates, otherwise the boom will not sustain for much longer.