Key Takeaways
- • Brevan Howard Digital's flagship Digital Asset fund lost nearly 30% last year, and assets fell from $2.5 billion earlier in the year to roughly $2 billion by the end of the summer, according to Business Insider.
- • Former Coinbase executive Chris Rayner-Cook now leads the unit and is hiring, rolling out new strategies, and fielding interest from sovereign wealth funds.
- • Brevan hired Omar Kanji, previously a partner at Dragonfly, as head of growth investments, and Jason Li, formerly of Millennium and Man Group, as a portfolio manager trading public digital-asset equities.
- • The flagship fund is down 3.8% this year through September versus a more than 4% decline in Bitcoin, while a stablecoin-focused strategy launched in February is up more than 35% year to date, per a person close to the firm.
- • Rayner-Cook argues the sector is shifting from infrastructure building to applications and from macro-driven moves to stock-specific dispersion, and expects the more than 80 eligible listed equities to more than double within 18 months.
Summary
Brevan Howard Digital, the crypto-investing unit of the $34 billion asset manager Brevan Howard, had a difficult prior year. Its flagship multi-strategy Digital Asset fund, which invests in public and private companies as well as digital assets, lost nearly 30%. Gautam Sharma, the unit's leader since its 2021 launch, departed the firm, and assets in the business declined from $2.5 billion earlier in the year to roughly $2 billion by the end of the summer, according to Business Insider.
Under former Coinbase executive Chris Rayner-Cook, the digital asset group is recruiting, launching new strategies, and attracting interest from sovereign wealth funds. Rayner-Cook told Business Insider that the industry has moved from an installation phase focused on infrastructure to an application phase in which mainstream businesses use blockchain technology without becoming crypto companies. He cited Visa, Mastercard, and PayPal rolling out stablecoin products this year as examples. He also described a shift from macro-driven trading toward a market with distinct winners and losers, which he said should create opportunities for active managers in a coming period of "dispersion."
Rayner-Cook said the investable universe will expand quickly, particularly in public equities. More than 80 listed equities currently meet the unit's criteria, and he expects that number to more than double over the next 18 months. Brevan has added Omar Kanji, previously a partner at venture capital firm Dragonfly, as head of growth investments, and Jason Li, a former investor at Millennium and Man Group, as a portfolio manager who will trade public equities connected to the digital-asset world.
Performance figures were provided by a person close to the firm. The flagship fund is down 3.8% year to date through September, compared with a decline of more than 4% in Bitcoin over the same period. A stablecoin-focused strategy introduced in February is up more than 35% this year. The firm said it has received inflows from sovereign wealth funds this year but declined to quantify the new capital. Brevan, whose founder Alan Howard has a long-standing personal interest in crypto and blockchain, aims to become the go-to crypto asset manager for large institutions seeking exposure to the sector.
Under former Coinbase executive Chris Rayner-Cook, the digital asset group is recruiting, launching new strategies, and attracting interest from sovereign wealth funds. Rayner-Cook told Business Insider that the industry has moved from an installation phase focused on infrastructure to an application phase in which mainstream businesses use blockchain technology without becoming crypto companies. He cited Visa, Mastercard, and PayPal rolling out stablecoin products this year as examples. He also described a shift from macro-driven trading toward a market with distinct winners and losers, which he said should create opportunities for active managers in a coming period of "dispersion."
Rayner-Cook said the investable universe will expand quickly, particularly in public equities. More than 80 listed equities currently meet the unit's criteria, and he expects that number to more than double over the next 18 months. Brevan has added Omar Kanji, previously a partner at venture capital firm Dragonfly, as head of growth investments, and Jason Li, a former investor at Millennium and Man Group, as a portfolio manager who will trade public equities connected to the digital-asset world.
Performance figures were provided by a person close to the firm. The flagship fund is down 3.8% year to date through September, compared with a decline of more than 4% in Bitcoin over the same period. A stablecoin-focused strategy introduced in February is up more than 35% this year. The firm said it has received inflows from sovereign wealth funds this year but declined to quantify the new capital. Brevan, whose founder Alan Howard has a long-standing personal interest in crypto and blockchain, aims to become the go-to crypto asset manager for large institutions seeking exposure to the sector.
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