Brevan Howard Gives Up Half of Its Blockbuster February Gains
(Bloomberg) -- Brevan Howard Asset Management enjoyed a stellar start to February. By the end of the month, much of those gains had vanished as Russia's invasion of Ukraine roiled rates trading.
The firm's flagship $8.3 billion Master Fund ended the month up 1.7%, having being up more than 3% about two weeks before when some of its star traders had made as much as 8%, according to investor letters seen by Bloomberg. Trading on Feb. 28 was particularly painful for the hedge fund, the letter shows.
The retreat follows one of the firm's best-ever days of trading on Feb. 4 after its traders made money on complex option bets on short-term euro rates. The firm has been betting on higher rates since last year.
Read More: Brevan Howard Had One of Its Best Trading Days on ECB Bet
A spokesman for the Jersey, Channel Islands-based investment firm, which managed about $18.4 billion in assets at the end of last year, declined to comment.
Vladimir Putin's invasion of Ukraine has sparked turbulence in the financial markets as a wave of sanctions against Russia were unveiled over the last weekend of February and led to lower stocks and increased volatility. U.S. and European bond yields fell sharply as demand for safe haven assets rose and hurt traders who had short wagers on those securities.
The rates markets have whipsawed since then, posing a challenge for traders who are trying to decipher the pace and direction of interest rates. Several hedge funds have suffered double digit losses.
Read More: H20 Sees Two Funds Shed Over 15% of Value in a Day on War Tumult
©2022 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
