Brevan Howard Global’s NAV is up 2.2 percent for the year at the end of October. The per share change has been negative for 5 out of 10 months of this year so far. The flagship hedge fund, Brevan Howard Master Fund, which takes almost 50 percent of the NAV was down 0.32 percent in the month of October.
Out of the seven funds of BH Global, only Brevan Howard Asia Master Fund Limited and Brevan Howard Credit Catalysts Master Fund posted minor gains of 0.53 percent and 0.44 percent, all others detracted in the last month. The maximum losses were seen in Brevan Howard Systematic Trading Master Fund and Brevan Howard Commodities Strategies Master Fund, which were down 4.15 percent and 2.65 percent respectively in October.
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In the commodities sector BHCSM lost in precious metals, energy, and base metals. Taking all seven funds together, the total performance was down 6.88 percent in October. With the total year to date return at 2.2%, the hedge fund might report one of its historical lows for the present fiscal year. The worst year so far has been a 1 percent return reported in 2010.
In the monthly performance letter, CEO Alan Howard notes that the impending expirations of tax cuts in the US could effectively put the economy back into recession and the problem at hand is how to cut the deficit in a way that minimizes the resulting recession. The firm also notes the positive signals and growth in the housing sector, which is likely to continue if the matter of fiscal cliff is resolved favorably.
However, the firm seems undeterred by the looming slowdown in business over fear of fiscal cliff. Brevan Howard Asset Management is expanding its New York office after largely closing shop during the 2008 financial crisis. The New York office now has sixteen employees, an increase from two in June of this year. Among the new people coming aboard are Don Carson and Josh Bertman from Credit Suisse Group, Giles Coppel from Tudor Investment Corp, and Vinay Pande from Deutsche Bank.