Brevan Howard, Europe’s largest hedge fund, has suffered thorugh a rough year. According to the latest monthly shareholder report (a copy of which was obtained by ValueWalk), its larger funds have continued to lose in July. BH Global Ltd, a feeder fund, saw a decline of -0.14 percent in NAV, now losing for the third straight month. NAV is up 0.99 percent for the year.
Take a look at Brevan Howard’s mid-year shareholder letter.
Brevan Howard Master Fund down for July
Brevan Howard Master Fund, which has $27.2 billion in assets under management was down -1.02 percent in July, trimming the YTD return to +2.99 percent. The fund lost in Forex and interest rates trading, and also in volatility—which remained low in July as markets gained back their losses for June.
BH’s Asian strategies continue to do better than its other macro plays. The Brevan Howard Asia Master Fund Limited, managed by Kaspar Ernst, gained 1.06 percent in July, marking its third straight month of gains. The Asia fund is now up 8.66 percent YTD and manages $2 billion. The fund’s strongest money maker in the month was USD interest rate trading.
Brevan Howard Emerging Markets Fund ranks among worst performers of the year
Brevan Howard Emerging Markets Strategies Master Fund Limited ended the month almost flat after a 0.01 percent gain. The fund is now down -12.9 percent for the year and ranks among the worst performers of the year, putting BH’s famous manager Geraldine Sundstrom in a tough spot. Forex and credit strategies in EMs returned flat in July. The fund manages $2.5 billion.
Commodities Strategies and Credit Catalysts Funds are doing better
Brevan Howard Commodities Strategies Master Fund Limited was the largest winner of July, gaining 3.8 percent. The fund was up in oil and Platinum Group Metals and lost in natural gas positions. BHCS manages $900 million under Stephane Nicolas, and is up 1.24 percent for the year.
Brevan Howard Credit Catalysts Master Fund Limited was up only 0.2 percent in July; the fund has been losing in MBS/ABS strategies for several months now. In July, gains in corporate credit were nulled by losses in MBS/ABS. The fund is up 6 percent for the year and manages $4 billion.
Brevan Howard Investment Fund – Emerging Markets Local Fixed Income Fund was up 0.52 percent in July and then slipped 0.19 percent in August. For the year BHEML is down 4 percent and manages $1.32 billion.
Brevan Howard Investment Fund II – Macro FX Fund was down 2.01 percent in July, and another 1.04 percent in August, trimming the overall decline to -4.2 percent. The fund manages $310 million and lost in long USD positions against shorts in other developed market currencies, in July.
Brevan Howard Credit Value Master Fund Limited was up 1.68 percent in July and has gained 11.3 percent for the year. This one manages $384 million and has been gaining in commercial MBS strategies.
The returns for August mentioned for some funds are from HSBC’s Hedge Weekly.