Key Takeaways
- • Portfolio manager departure: Alfreido Saitta is exiting Brevan Howard after the hedge fund shuttered his fund following a 4.9% loss in Q1 2024, attributed to failed bets on falling interest rates.
- • Selective retention amid underperformance: While Saitta departs, Louis Basger—who managed a fund that lost 7.8% in the same period—remains at the firm, indicating differentiated performance management across portfolio managers.
- • Talent reversal from hedge funds to banks: The exit underscores a broader industry trend of traders moving from hedge funds back to banks, exemplified by Yun Zhou's recent transition from Brevan Howard to Citi as an MD in rates options trading.
- • Continued hiring despite exits: Despite portfolio manager departures and middle-office reductions, Brevan Howard is actively recruiting investment talent, including Leon Haack from Balyasny Asset Management as a credit analyst in London.
- • Significant asset base across dual funds: The firm manages approximately $12 billion in its Master macro fund and $12.5 billion in its Alpha Strategies relative value fund, with recent hiring concentrated in credit, systematic strategies, emerging markets, and commodities across the Alpha Strategies platform.
Summary
Brevan Howard, a leading global macro and alternative investment hedge fund, has wound down a rates-focused fund managed by Alfreido Saitta following poor first-quarter performance in 2024. Saitta's fund declined 4.9% in Q1, with losses attributed to failed directional bets on falling interest rates. According to Bloomberg reporting cited in the primary source, Saitta will depart once the fund's wind-down is complete.
The management departure reflects significant underperformance, though notably, Louis Basger—who managed another Brevan Howard fund that lost 7.8% in the same quarter—is remaining with the firm. This suggests the firm's approach to portfolio manager retention varies based on individual circumstances or strategic considerations. Saitta brought meaningful experience to the role, having served as a managing director in rates trading at JPMorgan for five years prior to joining Brevan Howard in 2011, and earlier held a director position in short-term interest rates trading at Citi.
The Saitta departure reflects a broader reversal in hedge fund hiring trends. Over prior years, experienced rates traders and portfolio managers migrated from traditional banks to hedge funds seeking alpha generation and autonomy. However, the tide has shifted; traders are now moving in the opposite direction. Yun Zhou, formerly a macro portfolio manager at Brevan Howard, recently joined Citi as a New York-based MD in rates options trading, exemplifying this talent repatriation to banking institutions.
Despite management exits and cost-reduction measures—including cuts to middle-office staff and reductions among systematic macro portfolio managers—Brevan Howard continues to expand its investment team. The firm recently hired Leon Haack, a London-based credit analyst from rival hedge fund Balyasny Asset Management. Over recent years, hiring has been particularly robust within the Alpha Strategies fund, which manages approximately $12.5 billion in assets and focuses on relative value strategies with limited directional risk. The Master fund, Brevan Howard's macro-focused vehicle, maintains approximately $12 billion in assets under management. Recent recruitment has targeted credit, systematic, emerging markets, and commodities expertise.
The management departure reflects significant underperformance, though notably, Louis Basger—who managed another Brevan Howard fund that lost 7.8% in the same quarter—is remaining with the firm. This suggests the firm's approach to portfolio manager retention varies based on individual circumstances or strategic considerations. Saitta brought meaningful experience to the role, having served as a managing director in rates trading at JPMorgan for five years prior to joining Brevan Howard in 2011, and earlier held a director position in short-term interest rates trading at Citi.
The Saitta departure reflects a broader reversal in hedge fund hiring trends. Over prior years, experienced rates traders and portfolio managers migrated from traditional banks to hedge funds seeking alpha generation and autonomy. However, the tide has shifted; traders are now moving in the opposite direction. Yun Zhou, formerly a macro portfolio manager at Brevan Howard, recently joined Citi as a New York-based MD in rates options trading, exemplifying this talent repatriation to banking institutions.
Despite management exits and cost-reduction measures—including cuts to middle-office staff and reductions among systematic macro portfolio managers—Brevan Howard continues to expand its investment team. The firm recently hired Leon Haack, a London-based credit analyst from rival hedge fund Balyasny Asset Management. Over recent years, hiring has been particularly robust within the Alpha Strategies fund, which manages approximately $12.5 billion in assets and focuses on relative value strategies with limited directional risk. The Master fund, Brevan Howard's macro-focused vehicle, maintains approximately $12 billion in assets under management. Recent recruitment has targeted credit, systematic, emerging markets, and commodities expertise.
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