Key Takeaways
- • Chris Rokos, co-founder of Brevan Howard Asset Management, will launch his own hedge fund in 2015 with financial backing from his former employer following settlement of a prior lawsuit.
- • Rokos generated over $4 billion in profits during his tenure at Brevan Howard, establishing him as one of the firm's most productive traders and a founding partner since 2002.
- • Brevan Howard will take "a financial interest" in Rokos's new venture, though specific terms and capital commitments were not disclosed in the joint announcement.
- • The partnership resolves prior legal disputes between Rokos and Brevan Howard, enabling his departure to establish an independent fund while maintaining institutional alignment with his former firm.
Summary
Chris Rokos, a founding partner of Brevan Howard Asset Management, is launching his own hedge fund in 2015 with the backing of his former employer, according to a joint statement released on January 21. The move follows a settlement of litigation between the two parties and marks a significant development in the London-based hedge fund industry.
Rokos built an exceptional track record during his 13-year tenure at Brevan Howard, which he co-founded with billionaire Alan Howard and three other traders in 2002. As a macro trader, he generated more than $4 billion in profits for the firm's master fund, establishing himself as one of the most productive portfolio managers at the European asset management powerhouse. His performance and strategic importance to the firm underscore why Brevan Howard agreed to maintain a financial stake in his independent venture.
The new fund will operate with "a financial interest" from Brevan Howard, though the statement did not specify the size of the capital commitment or the precise terms of the arrangement. This structure suggests a continued alignment between Rokos and his former firm—a partnership that benefits both parties. For Rokos, it provides institutional capital and credibility; for Brevan Howard, it preserves a relationship with one of its most valuable profit generators and potentially offers allocation rights or profit-sharing arrangements in the new vehicle.
The settlement of the prior lawsuit removes a significant impediment to Rokos's departure and establishes clear terms governing his transition. This resolution allows him to launch his fund unencumbered by legal disputes while maintaining cooperative ties to Brevan Howard, a rare outcome in hedge fund industry separations that typically involve contentious departures and non-compete disputes.
Rokos built an exceptional track record during his 13-year tenure at Brevan Howard, which he co-founded with billionaire Alan Howard and three other traders in 2002. As a macro trader, he generated more than $4 billion in profits for the firm's master fund, establishing himself as one of the most productive portfolio managers at the European asset management powerhouse. His performance and strategic importance to the firm underscore why Brevan Howard agreed to maintain a financial stake in his independent venture.
The new fund will operate with "a financial interest" from Brevan Howard, though the statement did not specify the size of the capital commitment or the precise terms of the arrangement. This structure suggests a continued alignment between Rokos and his former firm—a partnership that benefits both parties. For Rokos, it provides institutional capital and credibility; for Brevan Howard, it preserves a relationship with one of its most valuable profit generators and potentially offers allocation rights or profit-sharing arrangements in the new vehicle.
The settlement of the prior lawsuit removes a significant impediment to Rokos's departure and establishes clear terms governing his transition. This resolution allows him to launch his fund unencumbered by legal disputes while maintaining cooperative ties to Brevan Howard, a rare outcome in hedge fund industry separations that typically involve contentious departures and non-compete disputes.
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