Key Takeaways
- • Brevan Howard Digital's flagship multi-strategy fund lost nearly 30% last year, and assets in the unit fell from $2.5 billion earlier in the year to roughly $2 billion by the end of summer, according to Business Insider.
- • Under former Coinbase executive Chris Rayner-Cook, the unit is hiring new talent, including Omar Kanji as head of growth investments and Jason Li as a public-equities portfolio manager, and has launched new strategies.
- • The fund is down 3.8% year to date through September versus a Bitcoin decline of more than 4% over the same period, while a stablecoin-focused strategy launched in February is up more than 35% this year, per a person close to the firm.
- • Sovereign wealth funds have provided inflows this year, though Brevan declined to disclose the amount.
- • Rayner-Cook expects the number of listed equities meeting the unit's criteria, currently more than 80, to more than double over the next 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 Brevan Howard Digital Asset fund, a multi-strategy vehicle investing 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 declined from $2.5 billion earlier in the year to about $2 billion by the end of summer, according to Business Insider.
Under the leadership of Chris Rayner-Cook, a former Coinbase executive, the group is rebuilding its investment roster and strategy lineup. The firm recently hired Omar Kanji, previously a partner at venture capital firm Dragonfly, as head of growth investments. Jason Li, formerly an investor at Millennium and Man Group, joined as a portfolio manager to trade public equities tied to the digital-asset sector. A stablecoin-focused strategy rolled out in February and is up more than 35% this year, a person close to the firm said.
Rayner-Cook framed the strategy around a structural shift in the industry, 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 argued the sector has moved from trading largely on macro trends to one with distinct winners and losers, creating dispersion that active managers could exploit. Rayner-Cook said there are more than 80 listed equities that fit the unit's criteria and expects that number to more than double over the next 18 months.
Performance context was provided by a person close to the firm: the flagship fund is down 3.8% this year through September, while Bitcoin has fallen more than 4% over the same period. Sovereign wealth funds have contributed inflows this year, though Brevan declined to specify the amount. The firm aims to become the go-to crypto asset manager for large institutions seeking exposure to the space. Rayner-Cook said, "The platform was built to be global, broad, and flexible."
Under the leadership of Chris Rayner-Cook, a former Coinbase executive, the group is rebuilding its investment roster and strategy lineup. The firm recently hired Omar Kanji, previously a partner at venture capital firm Dragonfly, as head of growth investments. Jason Li, formerly an investor at Millennium and Man Group, joined as a portfolio manager to trade public equities tied to the digital-asset sector. A stablecoin-focused strategy rolled out in February and is up more than 35% this year, a person close to the firm said.
Rayner-Cook framed the strategy around a structural shift in the industry, 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 argued the sector has moved from trading largely on macro trends to one with distinct winners and losers, creating dispersion that active managers could exploit. Rayner-Cook said there are more than 80 listed equities that fit the unit's criteria and expects that number to more than double over the next 18 months.
Performance context was provided by a person close to the firm: the flagship fund is down 3.8% this year through September, while Bitcoin has fallen more than 4% over the same period. Sovereign wealth funds have contributed inflows this year, though Brevan declined to specify the amount. The firm aims to become the go-to crypto asset manager for large institutions seeking exposure to the space. Rayner-Cook said, "The platform was built to be global, broad, and flexible."
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