Key Takeaways
- • Brevan Howard Asset Management is planning to launch two new hedge funds focused on interest rates and rising volatility, according to Bloomberg reporting.
- • The firm, co-founded by Alan Howard, is executing this strategy amid a significant investor exodus that has pressured assets under management.
- • Brevan Howard oversees approximately $34 billion in assets and employs senior talent including Rajesh Venkataramani, a former Goldman Sachs partner hired for a senior investment role.
- • The flagship macro fund has underperformed relative to broader hedge fund performance, with returns of only 0.8% in 2025 despite favorable conditions in the alternative investment space.
- • The new fund launches represent a diversification strategy, expanding beyond the firm's traditional global macro mandate into specialized volatility and fixed income strategies.
Summary
Brevan Howard Asset Management, the prominent global macro hedge fund founded in 2002 by Alan Howard, is planning to establish two additional hedge funds as the firm navigates significant client redemptions and asset outflows. According to Bloomberg, the new funds will focus on interest rate strategies and rising volatility, representing an expansion of the firm's investment offerings beyond its core macro platform.
The strategic fund launches come at a challenging time for Brevan Howard, which currently manages approximately $34 billion in assets but has faced persistent investor exodus pressures. This move reflects an attempt to stabilize and potentially grow the asset base by offering differentiated investment strategies that may appeal to institutional and alternative investors seeking exposure to specialized market opportunities.
The firm's flagship macro fund has struggled relative to broader hedge fund performance metrics. With returns of just 0.8% in 2025, the 20-year-old fund has significantly lagged the alternative investment sector during a period traditionally favorable for macro-focused strategies. This underperformance has likely accelerated the urgency of the new fund initiatives.
Brevan Howard has strengthened its investment team to support this expansion, including the recruitment of Rajesh Venkataramani, a former partner at Goldman Sachs, to a senior investment role. The firm has established a reputation for hiring top-tier talent from major investment banks and competing hedge funds, coupled with advanced quantitative capabilities, positioning it to execute specialized strategies across interest rates and volatility trading.
The planned launches underscore the competitive pressures facing established macro hedge funds amid evolving market dynamics and investor preferences for specialized, differentiated strategies over broad-based macro exposure.
The strategic fund launches come at a challenging time for Brevan Howard, which currently manages approximately $34 billion in assets but has faced persistent investor exodus pressures. This move reflects an attempt to stabilize and potentially grow the asset base by offering differentiated investment strategies that may appeal to institutional and alternative investors seeking exposure to specialized market opportunities.
The firm's flagship macro fund has struggled relative to broader hedge fund performance metrics. With returns of just 0.8% in 2025, the 20-year-old fund has significantly lagged the alternative investment sector during a period traditionally favorable for macro-focused strategies. This underperformance has likely accelerated the urgency of the new fund initiatives.
Brevan Howard has strengthened its investment team to support this expansion, including the recruitment of Rajesh Venkataramani, a former partner at Goldman Sachs, to a senior investment role. The firm has established a reputation for hiring top-tier talent from major investment banks and competing hedge funds, coupled with advanced quantitative capabilities, positioning it to execute specialized strategies across interest rates and volatility trading.
The planned launches underscore the competitive pressures facing established macro hedge funds amid evolving market dynamics and investor preferences for specialized, differentiated strategies over broad-based macro exposure.
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