Business

Hedge fund tycoon Howard brushes off poor performance with impressive rally

Hedge fund billionaire Alan Howard, the co-founder of Brevan Howard, has made an impressive comeback after a lengthy spell of lacklustre performance.

Brevan Howard's $2.3bn (£1.7bn) AH Fund, managed by Howard, rose 36.7 per cent in May to bring total year-to-date returns to 44.3 per cent, according to a source close to the firm.

The fund, which looks to make bets on macro-economic events around the world, was helped along by an uptick in volatility on the back of central banks moving away from bottoming interest rates, quantitative easing and forward guidance.

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"I am happy that the loyalty and confidence shown by my investors has been rewarded with a very positive result," said Howard in an emailed statement, first given to Bloomberg.

Howard launched the AH Fund last year, as investors began to defect from Brevan Howard. The thought was that investors would be persuaded to stick with a fund which counted Howard as its sole manager.

However the fund took a knock over the course of last year, as data from its investors the New York City Fire Department Pension Fund and the New York City Police Pension Fund showed earlier this year that it lost nearly nine per cent net of fees.

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The AH Fund is still open to a small amount of new allocations from existing Brevan Howard investors. It charges a 0.75 per cent management fee and 30 per cent performance fee.

Brevan Howard's flagship Master Fund has also been climbing. After the market closed on Tuesday, BH Macro – the London-listed fund vehicle that invests into the Brevan Howard Master Fund – reported a May gain in net asset value of 7.9 per cent, taking 2018 performance to 9.1 per cent.

The firm will be hoping that BH Macro too will benefit from uncertainty in politics and monetary policy.

Read more: Brevan Howard top exec steps down as star fund looks to cut costs

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