Brevan Howard sees $850 million in redemption requests from main funds - Bloomberg

Published 02/07/2025, 16:28
Brevan Howard sees $850 million in redemption requests from main funds - Bloomberg

Investing.com -- Brevan Howard Asset Management is facing approximately $850 million in combined redemption requests from its two main hedge funds by August 1, adding to outflows experienced in the first half of the year.

Investors in the firm’s $11.9 billion Master Fund have requested withdrawals of about $450 million, while the $11.4 billion Alpha Strategies fund has received redemption requests of just under $400 million, according to a report from Bloomberg, citing people familiar with the matter.

The two funds already experienced about $1 billion in net outflows during the first half of 2023, one source said.

These withdrawals, particularly from the Alpha Strategies multistrategy hedge fund, largely stem from Brevan Howard’s efforts to increase the duration of its capital commitments, similar to industry peers like Millennium Management and Citadel. Such strategic shifts typically result in some clients pulling their money, as not all investors are willing or permitted to lock in their capital for extended periods.

Approximately 70% of Alpha Strategies capital is now in share classes that require two or more years to fully redeem. This represents a significant change from about three-and-a-half years ago, when all of the fund’s money was available on a three-month notice period.

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