Key Takeaways
- • Giles Coppel, head of trading at Brevan Howard's New York office since 2012, is launching his own hedge fund backed by $200 million in seed capital from his current employer.
- • Brevan Howard, once a $40 billion asset powerhouse in 2013, has contracted significantly to $12.6 billion in assets as of May 2017, creating a backdrop for senior talent departures.
- • Coppel's launch follows a pattern of high-profile Brevan Howard alumni exits, including former partner Ben Melkman, who launched Light Sky Macro earlier in 2017 as one of the year's largest fund launches.
- • Coppel brings two decades of trading experience, including prior roles at Tudor Investment Corp. and Lehman Brothers, to his new independent venture.
Summary
Giles Coppel, a senior trader at $12.6 billion hedge fund Brevan Howard, is establishing his own hedge fund with $200 million in backing from his current employer. According to people familiar with the matter, Coppel has led trading operations at Brevan Howard's New York office since 2012 and will now take that expertise independent with significant financial support from the firm.
Coppel's transition reflects a broader pattern of talent migration from Brevan Howard, which has experienced substantial asset contraction over the past four years. The firm peaked at approximately $40 billion under management in 2013 but has declined to $12.6 billion by May 2017—a reduction exceeding two-thirds of its historical peak. This erosion of assets has coincided with departures of senior portfolio managers seeking to establish independent platforms.
The timing of Coppel's launch aligns with other recent Brevan Howard alumni exits. Ben Melkman, a former partner at the firm, launched Light Sky Macro earlier in 2017, which became one of the largest hedge fund launches of the year. These departures underscore competitive pressure within the industry, where experienced traders increasingly opt for independence rather than remaining at contracting mega-funds.
Coppel's background positions him as an experienced operator in institutional trading. His career includes tenures at Tudor Investment Corp., a noted systematic trading shop, and Lehman Brothers before joining Brevan Howard. His appointment as head of the New York trading desk reflects the confidence his current employer has placed in his capabilities—confidence now being underscored by the substantial capital commitment to his new fund.
Coppel's transition reflects a broader pattern of talent migration from Brevan Howard, which has experienced substantial asset contraction over the past four years. The firm peaked at approximately $40 billion under management in 2013 but has declined to $12.6 billion by May 2017—a reduction exceeding two-thirds of its historical peak. This erosion of assets has coincided with departures of senior portfolio managers seeking to establish independent platforms.
The timing of Coppel's launch aligns with other recent Brevan Howard alumni exits. Ben Melkman, a former partner at the firm, launched Light Sky Macro earlier in 2017, which became one of the largest hedge fund launches of the year. These departures underscore competitive pressure within the industry, where experienced traders increasingly opt for independence rather than remaining at contracting mega-funds.
Coppel's background positions him as an experienced operator in institutional trading. His career includes tenures at Tudor Investment Corp., a noted systematic trading shop, and Lehman Brothers before joining Brevan Howard. His appointment as head of the New York trading desk reflects the confidence his current employer has placed in his capabilities—confidence now being underscored by the substantial capital commitment to his new fund.
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