Key Takeaways
- • Brevan Howard's two flagship funds—Alpha Strategies and Master—returned 8% and 0.8% respectively in 2025, significantly underperforming the broader macro hedge fund peer set that delivered double-digit to mid-30% returns.
- • The $33 billion asset manager lagged well behind competitors: Bridgewater's Pure Alpha fund gained 33%, Discovery Capital returned 35.6%, and D.E. Shaw's Oculus macro fund delivered over 28% for the year.
- • Brevan Howard's smaller Emerging Markets strategy proved to be the firm's bright spot, generating returns exceeding 15% in 2025 and demonstrating differentiated performance from the flagship funds.
- • December proved particularly weak for the two largest funds, with Alpha Strategies returning 0.7% and Master returning only 0.3% in the final month, despite a favorable macro environment characterized by geopolitical volatility and central bank policy shifts.
- • The divergence highlights Brevan Howard's struggle to capitalize on 2025's macro trading opportunities—including U.S. tariff policy impacts, Middle East and Ukraine conflicts, and monetary policy decisions—that benefited competing multi-strategy and macro-focused managers.
Summary
Brevan Howard, the $33 billion global macro hedge fund, delivered lackluster returns in 2025 relative to its peer group, with its two largest funds substantially trailing competitors that achieved banner years. According to Business Insider, the firm's Alpha Strategies fund returned 8% for the year, while its Master Fund—the flagship vehicle managing roughly $11 billion—eked out just 0.8% for 2025. Both funds struggled particularly in December, returning 0.7% and 0.3% respectively in the final month.
The underperformance became starker when compared against Brevan Howard's macro peers, which experienced outsized gains from favorable market conditions. Bridgewater Associates generated the most profits in its decades of trading history, with its Pure Alpha fund surging 33% in 2025 and its All Weather fund up more than 20% for the year. Discovery Capital, the macro fund managed by former Tiger Management investor Rob Citrone, delivered 35.6% returns. D.E. Shaw's Oculus macro-focused fund achieved gains exceeding 28%, according to individuals familiar with the respective firms.
Brevan Howard's sole bright spot came from its smaller Emerging Markets strategy, which returned more than 15% for the year following a 1.6% December gain. That strategy manages approximately $1 billion in assets, substantially smaller than the flagship funds but demonstrating the firm retains tactical capabilities in certain market segments.
The disparity between Brevan Howard's performance and competitors' gains is particularly notable given the macro environment of 2025. The year provided multiple trading opportunities across geopolitical flashpoints, including ripple effects from President Donald Trump's tariff policies, ongoing conflicts in the Middle East and Ukraine, and shifting central bank decisions. These conditions typically favor active macro managers, making Brevan Howard's relative underperformance more pronounced. The firm declined to comment on its results or strategy outlook.
The underperformance became starker when compared against Brevan Howard's macro peers, which experienced outsized gains from favorable market conditions. Bridgewater Associates generated the most profits in its decades of trading history, with its Pure Alpha fund surging 33% in 2025 and its All Weather fund up more than 20% for the year. Discovery Capital, the macro fund managed by former Tiger Management investor Rob Citrone, delivered 35.6% returns. D.E. Shaw's Oculus macro-focused fund achieved gains exceeding 28%, according to individuals familiar with the respective firms.
Brevan Howard's sole bright spot came from its smaller Emerging Markets strategy, which returned more than 15% for the year following a 1.6% December gain. That strategy manages approximately $1 billion in assets, substantially smaller than the flagship funds but demonstrating the firm retains tactical capabilities in certain market segments.
The disparity between Brevan Howard's performance and competitors' gains is particularly notable given the macro environment of 2025. The year provided multiple trading opportunities across geopolitical flashpoints, including ripple effects from President Donald Trump's tariff policies, ongoing conflicts in the Middle East and Ukraine, and shifting central bank decisions. These conditions typically favor active macro managers, making Brevan Howard's relative underperformance more pronounced. The firm declined to comment on its results or strategy outlook.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.