Key Takeaways
- • Brevan Howard commits $200 million to Catalio Capital Management's Public Equities healthcare fund, structured as a separately managed account where Catalio executes trades while Brevan Howard bears investment risk.
- • Catalio Capital Management is a $2.3 billion New York-based healthcare investment firm co-founded by George Petrocheilos and Jacob Vogelstein, with the Public Equities fund managed by Ben Snedeker, a former D.E. Shaw portfolio manager with chemistry credentials from Penn State and Yale.
- • The Catalio Public Equities fund has delivered 49% net-of-fees returns since inception in 2023, demonstrating strong early-stage performance in healthcare-focused public equities investing.
- • This investment exemplifies a major industry trend: Goldman Sachs data shows multi-manager hedge funds allocating to external managers jumped from just over 50% in 2022 to approximately 75% as of October 2025, representing one of the sector's most significant structural shifts.
- • Catalio Capital counts both KKR and Brevan Howard as institutional backers, positioning the healthcare investment firm as a significant player in attracting capital from blue-chip alternative asset managers.
Summary
Brevan Howard, one of the world's largest macro hedge funds, has committed $200 million to Catalio Capital Management's healthcare-focused Public Equities fund, according to sources familiar with the transaction. The investment, announced November 7, 2025, reflects a broader structural realignment in the hedge fund industry as established multi-managers increasingly allocate capital to specialized external managers rather than maintaining wholly internal portfolio management.
The deal will operate through a separately managed account structure, with Catalio Capital executing all trades while Brevan Howard retains full investment risk and oversight. Catalio Capital Management, headquartered in New York, manages approximately $2.3 billion in assets across public and private healthcare equities and fixed income securities. The firm was co-founded by George Petrocheilos and Jacob Vogelstein, with Ben Snedeker, a former portfolio manager at D.E. Shaw with advanced chemistry credentials, leading the Public Equities fund. The firm also counts private equity giant KKR among its institutional investors.
Catalio's Public Equities fund has demonstrated strong early performance since its 2023 launch, posting a 49% net-of-fees return. This track record has positioned the fund as an attractive external allocation target for established hedge funds seeking healthcare sector expertise and specialized equity market execution.
Brevan Howard's allocation underscores a pronounced industry trend documented by Goldman Sachs in its October 2025 report. The analysis reveals that multi-manager hedge fund allocations to external hedge funds have accelerated dramatically, rising from just over 50% of multi-managers making such investments in 2022 to nearly 75% by October 2025. This represents one of the most significant structural developments in alternative asset management in recent years, driven by hedge funds' focus on capital efficiency, specialist manager access, and portfolio diversification across distinct investment strategies and sectors.
The deal will operate through a separately managed account structure, with Catalio Capital executing all trades while Brevan Howard retains full investment risk and oversight. Catalio Capital Management, headquartered in New York, manages approximately $2.3 billion in assets across public and private healthcare equities and fixed income securities. The firm was co-founded by George Petrocheilos and Jacob Vogelstein, with Ben Snedeker, a former portfolio manager at D.E. Shaw with advanced chemistry credentials, leading the Public Equities fund. The firm also counts private equity giant KKR among its institutional investors.
Catalio's Public Equities fund has demonstrated strong early performance since its 2023 launch, posting a 49% net-of-fees return. This track record has positioned the fund as an attractive external allocation target for established hedge funds seeking healthcare sector expertise and specialized equity market execution.
Brevan Howard's allocation underscores a pronounced industry trend documented by Goldman Sachs in its October 2025 report. The analysis reveals that multi-manager hedge fund allocations to external hedge funds have accelerated dramatically, rising from just over 50% of multi-managers making such investments in 2022 to nearly 75% by October 2025. This represents one of the most significant structural developments in alternative asset management in recent years, driven by hedge funds' focus on capital efficiency, specialist manager access, and portfolio diversification across distinct investment strategies and sectors.
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