Brevan Howard is a global alternative asset management firm that specializes in macro trading strategies. It was founded in 2002 by Alan Howard and Jean-Philippe Blochet, along with three other partners: Trifon Natsis, James Vernon, and Chris Rokos. The firm is headquartered in London, United Kingdom, with additional offices in New York, Geneva, Jersey, and Hong Kong.
Brevan Howard is known for its flagship fund, the Brevan Howard Master Fund, which focuses on global macro strategies, taking positions in various asset classes, including interest rates, foreign exchange, equities, and commodities. The firm's investment approach is primarily based on macroeconomic analysis, identifying opportunities arising from changes in economic and political environments, as well as market inefficiencies. Brevan Howard employs a combination of discretionary and systematic trading strategies, with an emphasis on risk management and capital preservation.
Some of the key strategies employed by Brevan Howard include:
- Global Macro: This strategy involves taking positions in various asset classes based on macroeconomic trends, political developments, and market sentiment.
- Discretionary Trading: Brevan Howard's discretionary traders analyze macroeconomic data, market trends, and geopolitical events to make informed decisions about their trades.
- Systematic Trading: The firm uses quantitative models and algorithms to identify and execute trades based on historical data, market patterns, and other factors.
- Relative Value: Brevan Howard identifies and trades on pricing discrepancies between related financial instruments, such as bonds, interest rate swaps, and options.
- Volatility Trading: The firm takes positions in options and other derivative instruments to exploit changes in market volatility.
Brevan Howard had approximately $13 billion in assets under management (AUM). However, AUM figures can change over time, so it is advisable to check the latest numbers for an accurate assessment.
Brevan Howard's clients include institutional investors, such as pension funds, endowments, foundations, and sovereign wealth funds, as well as high net worth individuals and family offices. The firm is known for hiring top talent from leading investment banks, hedge funds, and quantitative research firms, contributing to its success and reputation in the global macro trading space.
Throughout its history, Brevan Howard has experienced periods of strong performance, making it one of the most well-known and respected hedge funds in the industry. However, like any investment firm, its performance can be subject to fluctuations based on market conditions and other factors.