Key Takeaways
- • Brevan Howard is preparing to allocate capital to external equities-focused hedge fund managers, extending its external manager program beyond traditional macro strategies, according to Bloomberg.
- • The firm hired former UBS executives Michael Dwier and Adolfo Oliete to lead the initiative: Dwier covers US-based managers, while Oliete targets long-short equity hedge funds in Europe and Asia.
- • The program will run through separately managed accounts and is expected to scale an existing component of the multi-strategy Alpha Strategies fund.
- • Brevan Howard, which manages more than $34bn in assets, reportedly declined to comment on the move.
Summary
Brevan Howard Asset Management is preparing to allocate capital to external equities-focused hedge fund managers, an expansion of its strategy of backing outside talent beyond its traditional global macro base, according to a Bloomberg report. The firm has hired former UBS executives Michael Dwier and Adolfo Oliete to lead the effort. According to people familiar with the matter, Dwier will focus on allocating to US-based managers, while Oliete will identify long-short equity hedge funds across Europe and Asia.
The new programme will operate through separately managed accounts and is expected to scale up an existing component of Brevan Howard's multi-strategy Alpha Strategies fund, extending its use of external manager allocations. Historically, the firm has invested externally primarily in macro strategies, including allocations to Key Square Group and ARP Global Capital. The move reflects a broader trend among large multi-strategy firms deploying capital to outside managers as internal platforms grow in size and complexity. Industry estimates cited in the report suggest more than 70% of multi-manager platforms now allocate externally, compared with just over half in 2022.
The expansion comes as equities trading has been a key contributor to Brevan Howard's performance, helping offset weaker results in rates and foreign exchange strategies. The firm has also been increasing its internal equities capability, including building sector specialist teams under strategist Abhijit Chakrabortti and maintaining active stock exposure through traders such as Fash Golchin.
The move places Brevan Howard alongside peers such as Millennium Management and Qube Research & Technologies, which have used external capital allocation to scale exposure and access specialised trading talent. Citadel has also participated selectively in this ecosystem, recently backing external manager Toms Capital Investment Management. Brevan Howard, which manages more than $34bn in assets, reportedly declined to comment.
The new programme will operate through separately managed accounts and is expected to scale up an existing component of Brevan Howard's multi-strategy Alpha Strategies fund, extending its use of external manager allocations. Historically, the firm has invested externally primarily in macro strategies, including allocations to Key Square Group and ARP Global Capital. The move reflects a broader trend among large multi-strategy firms deploying capital to outside managers as internal platforms grow in size and complexity. Industry estimates cited in the report suggest more than 70% of multi-manager platforms now allocate externally, compared with just over half in 2022.
The expansion comes as equities trading has been a key contributor to Brevan Howard's performance, helping offset weaker results in rates and foreign exchange strategies. The firm has also been increasing its internal equities capability, including building sector specialist teams under strategist Abhijit Chakrabortti and maintaining active stock exposure through traders such as Fash Golchin.
The move places Brevan Howard alongside peers such as Millennium Management and Qube Research & Technologies, which have used external capital allocation to scale exposure and access specialised trading talent. Citadel has also participated selectively in this ecosystem, recently backing external manager Toms Capital Investment Management. Brevan Howard, which manages more than $34bn in assets, reportedly declined to comment.
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