Key Takeaways
- • Subhrajit Banerjee, a 13-year fixed income strategist at HSBC, departed in November 2020 to join macro hedge fund Brevan Howard in London, following HSBC's February 2020 rates desk job cuts.
- • Brevan Howard executed an aggressive hiring campaign throughout 2020, recruiting senior talent including George Dramitinos (former UBS global co-head of swaps trading), Emmet Mung (Morgan Stanley rates analyst), Ajay Kumar (Goldman Sachs former head of APAC index trading), Aadarsh Malde (Point72), and Natalie Faye Smith as head of strategy.
- • Macro hedge funds significantly outperformed in 2020: Brevan Howard's AS Macro Master fund returned more than 14% through early November, while competitor Caxton Associates' flagship fund was up over 35% in the same period.
- • HSBC's strategic retreat from rates trading reflects broader cost pressures; the bank announced 35,000 job cuts globally and continues restructuring despite strong macro division performance.
Summary
Brevan Howard has accelerated recruitment of senior financial talent from major banks during a favorable 2020 for macro hedge funds. Subhrajit Banerjee, a fixed income strategist with 13 years of tenure at HSBC, joined the London-based hedge fund in November 2020, according to his LinkedIn profile. His departure follows HSBC's February 2020 reductions on its rates trading desk—a move that likely contributed to the strategist's decision to exit the bank sector for the hedge fund space.
Banerjee's hire represents one component of Brevan Howard's broad talent acquisition effort throughout 2020. The hedge fund recruited George Dramitinos from UBS in September, bringing onboard the bank's former global co-head of swaps trading after Dramitinos had been out of the market since 2018. Prior to Dramitinos, Brevan Howard hired Emmet Mung, a rates analyst from Morgan Stanley, in July; Ajay Kumar, Goldman Sachs' former head of APAC index trading, in June for its Singapore office; Aadarsh Malde from Point72 in September; and Natalie Faye Smith as head of strategy in August. The fund also completed earlier hires including Antonio Belgioioso in March.
The hiring momentum reflects strong performance in the macro hedge fund sector. Brevan Howard's AS Macro Master fund reported returns exceeding 14% through the first week of November 2020, while competitor Caxton Associates' flagship fund achieved gains of more than 35% over the same period. This performance enabled these funds to attract and retain experienced professionals during a period when traditional banking operations faced contraction pressures.
Conversely, HSBC's decision to trim its rates trading desk reflects the cost dynamics affecting large universal banks. Despite strong macro division performance, HSBC implemented 35,000 job cuts globally and continues an extended restructuring program. The divergence between hedge fund hiring and bank reductions underscores the competitive pressure facing traditional banking divisions in rates and macro trading—a sector perceived as expensive unless a bank maintains market-leading scale and profitability.
Banerjee's hire represents one component of Brevan Howard's broad talent acquisition effort throughout 2020. The hedge fund recruited George Dramitinos from UBS in September, bringing onboard the bank's former global co-head of swaps trading after Dramitinos had been out of the market since 2018. Prior to Dramitinos, Brevan Howard hired Emmet Mung, a rates analyst from Morgan Stanley, in July; Ajay Kumar, Goldman Sachs' former head of APAC index trading, in June for its Singapore office; Aadarsh Malde from Point72 in September; and Natalie Faye Smith as head of strategy in August. The fund also completed earlier hires including Antonio Belgioioso in March.
The hiring momentum reflects strong performance in the macro hedge fund sector. Brevan Howard's AS Macro Master fund reported returns exceeding 14% through the first week of November 2020, while competitor Caxton Associates' flagship fund achieved gains of more than 35% over the same period. This performance enabled these funds to attract and retain experienced professionals during a period when traditional banking operations faced contraction pressures.
Conversely, HSBC's decision to trim its rates trading desk reflects the cost dynamics affecting large universal banks. Despite strong macro division performance, HSBC implemented 35,000 job cuts globally and continues an extended restructuring program. The divergence between hedge fund hiring and bank reductions underscores the competitive pressure facing traditional banking divisions in rates and macro trading—a sector perceived as expensive unless a bank maintains market-leading scale and profitability.
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