Brevan Howard will support the new hedge fund that will be established by Chris Rokos, its former star trader after settling their dispute.
Rokos together with Allan Howard and three other traders co-founded Brevan Howard in 2002. He earned approximately $900 million during 10-year tenure at the firm until his departure in 2012.
Court filings submitted by Rokos showed that he was one of the top money makers at Brevan Howard. In 2011 alone, he generated $1.2 billion in trading profits, representing 30% of the returns for the Master fund of the global alternative asset manager during that year.
Value Partners Asia ex-Japan Equity Fund has delivered a 60.7% return since its inception three years ago. In comparison, the MSCI All Counties Asia (ex-Japan) index has returned just 34% over the same period. The fund, which targets what it calls the best-in-class companies in "growth-like" areas of the market, such as information technology and Read More
Legal battle between Brevan Howard and Rokos
Last year, Rokos filed a lawsuit against Brevan Howard to invalidate a clause in his contract that prohibits him from managing investments from outside investors for five years.
The lawyers representing Rokos argued that the non-compete clause in his contract with the firm constituted a restraint of trade. They also emphasized that the restrictions mean the public will be deprived of his skills and hard work for more than five years.
Brevan Howard filed a counter suit against Rokos to prevent him from starting his own hedge fund. The firm argued that Rokos is trying to escape from obligations that “no longer fit with his current wishes, yet still seels to retail all financial benefits conferred to him.”
According to Allan Kilkenny, a spokesman for Rokos said his legal battle against Brevan Howard has been settled. Rokos is no longer restricted from managing money from outside investors until 2018.
Brevan Howard to take financial interest in Rokos’ new venture
In a joint statement, Brevan Howard indicated that it will take a “financial interest” in Rokos’ new venture, but the firm did not disclose details regarding the investment.
Howard said, “Chris is an exceptional trader.This new relationship is one from which everyone will benefit.”
On the other hand, Rokos said, “I look forward to a regular dialog with Alan, something I have valued greatly ever since we started working together. “I am excited at the prospect of establishing a new independent fund later this year, and look forward to the challenge and opportunity which this represents.”