Money managers under the microscope
How(ard) do you do it?
Brevan Howard Asset Management, Europe’s biggest hedge fund firm, has posted a 133 percent rise in operating profits to an astonishing 503 million pounds for the year to July 2008, demonstrating the benefits of being one of the (few) winners in last year’s market turmoil.
While the average hedge fund lost 19 percent last year, according to Hedge Fund Research, Brevan Howard’s main fund rose 21 percent.
The firm, which runs around $27 billion, also distributed 460 million pounds to members, although this figure included a 284 million pound payment to a subsidiary company that pays some staff and infrastructure costs.
Navigating the fallout in the hedge fund industry has been no easy task.
Man Group last week reported profits had almost halved, albeit for a more recent time period, while GLG recently reported sharp fall in assets.
Brevan Howard’s results for the remainder of 2008, when they come out, will make interesting reading. But any fund able to profit both when markets are good and when they are not is surely demonstrating what hedge funds are meant to be about.
(See also Strong Man no more)