Brevan Howard, one of the largest hedge funds in Europe, has recorded its first ever annual loss since its inception in 2003, it emerged yesterday.
The firm’s primary macro fund, the Brevan Howard Fund, lost 0.82 per cent in 2014, according to a leaked letter to investors. The $24bn fund – run by co-founder Alan Howard – was down 0.15 per cent in December and had lost money in nine out of the last 12 months.
To compound the bad news for the Jersey-registered company, it also came to light yesterday that minority shareholder Swiss Re, the world’s second largest reinsurer, was looking to sell its 15 per cent stake in Brevan Howard Asset Management – the umbrella company that manages over $30bn in several hedge funds. The stake is being pitched to a number unidentified buyers. Bids were reportedly due last week.
In recent years, Brevan Howard has been one of the top performing hedge funds, growing assets under management from $12.5bn in 2007 to $40bn by the end of 2013. But last year it proved to be one of the toughest for hedge fund performance since the onset of the financial crisis in 2008 and macro hedge funds – which bet on major economic trends across a range of asset classes including stocks, bonds and currencies – have particularly suffered.
Brevan Howard and Swiss Re declined to comment when contacted by City A.M..