Key Takeaways
- • At least five credit portfolio managers have departed Brevan Howard Asset Management, per Bloomberg, citing people familiar with the matter.
- • The departing PMs are Simon Gee, Jenna Collins, Adam Steer, Chris Watson and David Heinau, leaving the $35bn hedge fund.
- • Brevan Howard's Alpha Strategies Fund lost approximately 1% in October, erasing its gains for the year, while the flagship Master fund returned 0.4% in the month, trimming year-to-date losses to 0.2%.
- • Credit trading head Andy Silver is stepping away to take an advisory role; the firm says this transition is unrelated to the latest exits.
- • The exits come as credit markets face AI-related borrowing concerns, elevated rates and geopolitical uncertainty, with European high-yield spreads reaching levels last seen during the 2009 financial crisis.
Summary
At least five credit portfolio managers have left Brevan Howard Asset Management, the $35bn hedge fund, according to a Bloomberg report cited by Hedgeweek. The departing managers, named by people familiar with the matter, are Simon Gee, Jenna Collins, Adam Steer, Chris Watson and David Heinau. The report frames the exits as another sign of pressure across the hedge fund industry during a period of heightened market volatility.
The departures follow news that credit trading head Andy Silver is stepping away from his role to take up an advisory position. The source material states that this transition is unrelated to the latest exits.
Performance is also under scrutiny. Brevan Howard's Alpha Strategies Fund lost approximately 1% in October, erasing its gains for the year. The flagship Brevan Howard Master fund returned 0.4% over the same month, reducing its year-to-date losses to 0.2%.
The moves coincide with a difficult backdrop for credit. Markets have faced mounting pressure from AI-related borrowing concerns, elevated interest rates and geopolitical uncertainty. European high-yield spreads have widened to levels last seen during the 2009 financial crisis. The volatility is creating challenges for multistrategy hedge funds that are seeking to expand their credit trading operations while maintaining strict risk controls.
Elsewhere in the industry, Millennium Management recently withdrew more than $1.5bn from two external hedge funds, including Axebrook Capital, while credit specialist Arini was on track to record its largest monthly loss.
The departures follow news that credit trading head Andy Silver is stepping away from his role to take up an advisory position. The source material states that this transition is unrelated to the latest exits.
Performance is also under scrutiny. Brevan Howard's Alpha Strategies Fund lost approximately 1% in October, erasing its gains for the year. The flagship Brevan Howard Master fund returned 0.4% over the same month, reducing its year-to-date losses to 0.2%.
The moves coincide with a difficult backdrop for credit. Markets have faced mounting pressure from AI-related borrowing concerns, elevated interest rates and geopolitical uncertainty. European high-yield spreads have widened to levels last seen during the 2009 financial crisis. The volatility is creating challenges for multistrategy hedge funds that are seeking to expand their credit trading operations while maintaining strict risk controls.
Elsewhere in the industry, Millennium Management recently withdrew more than $1.5bn from two external hedge funds, including Axebrook Capital, while credit specialist Arini was on track to record its largest monthly loss.
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