LONDON (Reuters) - Billionaire Alan Howard’s hedge fund, Brevan Howard Asset Management, has opened two funds to additional outside investors, a source with direct knowledge of the matter told Reuters.
A cash-raising drive for these funds, which will invest in stocks and bonds and allow investors to get their money out daily and avoid a performance fee, comes as the firm’s main fund - which is already open to outside investors - has struggled with performance and shed assets.
Investors have pulled billions of dollars from Brevan’s main fund in recent years to leave assets at $17.6 billion at the end of March, down from about $27 billion two years ago. Last November the firm laid off 50 support staff.
Combined assets in the two funds — The Global Investment Fund and the U.S. Investment Fund — were $151 million in February, one source said. A Brevan spokesman said around two-thirds of the assets in the funds had come from the main fund, with additional money from partners and staff at Brevan Howard.
Both are ‘liquid alternatives’ funds, which look to mimic traditional hedge fund investments using liquid assets such as futures, allowing investors to exit within 24 hours instead of having to wait three months or even longer.
The funds are managed by a 16-strong team in its Liquid Portfolio Strategies business led by former UBS Group executive Roberto Hoornweg, who was hired to lead the business in late 2014.
Reporting by Maiya Keidan; editing by Adrian Croft and Keith Weir