Key Takeaways
- • Brevan Howard Asset Management launches DG Systematic Trading LLP, a joint venture pursuing systematic and quantitative trading strategies with $300 million in seed capital from the flagship Brevan Howard fund.
- • David Gorton, founding partner of London Diversified Fund Management and systematic trading veteran since 2006, serves as chief investment officer of the new venture, which will manage the Brevan Howard Systematic Trading Fund.
- • The move positions Brevan Howard alongside established competitors such as Man Group PLC in the quantitative and algorithmic trading space, where computer-driven models identify market trends and execution opportunities.
- • The fund launched internally on March 1 with $300 million in capital injection, representing Brevan Howard's commitment to expanding its systematic trading capabilities within its multi-strategy platform.
Summary
Brevan Howard Asset Management has entered the systematic and quantitative trading market through a newly formed joint venture designed to capitalize on algorithmic and computer-driven investment strategies. The London-based hedge fund group announced the launch of DG Systematic Trading LLP, a partnership vehicle with seasoned systematic trading specialist David Gorton, to operate the Brevan Howard Systematic Trading Fund.
David Gorton brings substantial industry experience to the venture, having founded and operated London Diversified Fund Management while running capital using systematic models since 2006. In his role as chief investment officer of the new entity, Gorton will lead investment decisions and strategy execution for the fund. The partnership reflects Brevan Howard's strategic decision to expand its investment capabilities beyond its existing multi-strategy platform, which already encompasses multiple fund vehicles across credit, emerging markets, and master fund structures.
The Brevan Howard Systematic Trading Fund commenced operations internally on March 1, 2010, with an initial capital allocation of $300 million from Brevan Howard's flagship operations. This seed capital provides immediate scale and demonstrates the parent firm's confidence in the systematic trading approach. The venture positions Brevan Howard within a competitive segment that includes established players such as Man Group PLC, whose product suite already incorporates systematic trading strategies leveraging computational models to identify market trends.
The launch underscores a broader industry trend toward quantitative and algorithmic investment strategies, where hedge funds deploy proprietary technology and mathematical models to execute trades with minimal human intervention. For Brevan Howard, the move represents both a diversification of its strategy toolkit and an institutional response to demonstrated investor demand for systematic approaches that operate independently from discretionary macro and credit-based strategies.
David Gorton brings substantial industry experience to the venture, having founded and operated London Diversified Fund Management while running capital using systematic models since 2006. In his role as chief investment officer of the new entity, Gorton will lead investment decisions and strategy execution for the fund. The partnership reflects Brevan Howard's strategic decision to expand its investment capabilities beyond its existing multi-strategy platform, which already encompasses multiple fund vehicles across credit, emerging markets, and master fund structures.
The Brevan Howard Systematic Trading Fund commenced operations internally on March 1, 2010, with an initial capital allocation of $300 million from Brevan Howard's flagship operations. This seed capital provides immediate scale and demonstrates the parent firm's confidence in the systematic trading approach. The venture positions Brevan Howard within a competitive segment that includes established players such as Man Group PLC, whose product suite already incorporates systematic trading strategies leveraging computational models to identify market trends.
The launch underscores a broader industry trend toward quantitative and algorithmic investment strategies, where hedge funds deploy proprietary technology and mathematical models to execute trades with minimal human intervention. For Brevan Howard, the move represents both a diversification of its strategy toolkit and an institutional response to demonstrated investor demand for systematic approaches that operate independently from discretionary macro and credit-based strategies.
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