Key Takeaways
- • Ben Melkman, a partner at Brevan Howard ($18 billion AUM), is departing to establish his own hedge fund after successfully managing the firm's $500 million Argentina fund, which delivered an 18% return since inception and is now returning capital to investors.
- • Melkman's departure marks a significant talent exodus from Brevan Howard, following Chris Rokos' 2012 exit; market participants have characterized a potential Melkman fund as "the most exciting hedge fund event since Greg Coffey left GLG for Moore," indicating strong institutional anticipation for his independent venture.
- • Brevan Howard's recent performance challenges—including a 2% loss in its Master Fund last year, a 1.8% decline through April 2016, and $1.4 billion in Q1 redemptions—create a backdrop for senior talent departures and suggest investor dissatisfaction with flagship strategy execution.
- • Melkman brings substantial credentials from prior roles at Morgan Stanley and Deutsche Bank, with established reputation as a "super smart" macro investor well-regarded in emerging markets and distressed debt strategies.
Summary
Ben Melkman, a senior partner at macro hedge fund Brevan Howard, has announced his departure to establish an independent fund. Melkman joined Brevan Howard in 2009 following earlier positions at Morgan Stanley and Deutsche Bank, and has earned recognition as a skilled macro investor with particular expertise in emerging markets and distressed debt strategies.
Melkman's most notable achievement at Brevan Howard was leading the firm's dedicated $500 million Argentina fund. That vehicle has delivered an 18% return since inception and is currently returning capital to investors, positioning Melkman's track record as a tangible success in a challenging macro environment. According to Bloomberg's initial reporting, Melkman's departure and fund launch plans garnered attention from senior market participants, with one characterizing a new Melkman vehicle as "the most exciting hedge fund event since Greg Coffey left GLG for Moore"—a comparison underscoring institutional expectations for his independent initiative.
Melkman's exit occurs amid broader headwinds at Brevan Howard. The $18 billion firm, founded in 2002 by Alan Howard, Chris Rokos, and former Credit Suisse colleagues, has faced performance challenges and capital outflows. The Master Fund declined 2% in 2015 and was down 1.8% through April 2016, while the firm experienced $1.4 billion in redemptions during the first quarter alone. This represents a difficult period for the flagship strategy that once positioned Brevan Howard as a preeminent European macro hedge fund.
The departure also reflects a pattern of senior talent migration from the firm. Chris Rokos, a co-founder, departed in 2012 and subsequently launched Rokos Capital Management after resolving a contractual dispute regarding employment restrictions. Melkman's decision to establish his own fund follows a similar trajectory, with his Argentina fund performance and macro market reputation positioning him as an independently capable manager capable of attracting institutional capital.
Melkman's most notable achievement at Brevan Howard was leading the firm's dedicated $500 million Argentina fund. That vehicle has delivered an 18% return since inception and is currently returning capital to investors, positioning Melkman's track record as a tangible success in a challenging macro environment. According to Bloomberg's initial reporting, Melkman's departure and fund launch plans garnered attention from senior market participants, with one characterizing a new Melkman vehicle as "the most exciting hedge fund event since Greg Coffey left GLG for Moore"—a comparison underscoring institutional expectations for his independent initiative.
Melkman's exit occurs amid broader headwinds at Brevan Howard. The $18 billion firm, founded in 2002 by Alan Howard, Chris Rokos, and former Credit Suisse colleagues, has faced performance challenges and capital outflows. The Master Fund declined 2% in 2015 and was down 1.8% through April 2016, while the firm experienced $1.4 billion in redemptions during the first quarter alone. This represents a difficult period for the flagship strategy that once positioned Brevan Howard as a preeminent European macro hedge fund.
The departure also reflects a pattern of senior talent migration from the firm. Chris Rokos, a co-founder, departed in 2012 and subsequently launched Rokos Capital Management after resolving a contractual dispute regarding employment restrictions. Melkman's decision to establish his own fund follows a similar trajectory, with his Argentina fund performance and macro market reputation positioning him as an independently capable manager capable of attracting institutional capital.
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