Brevan Howard Cuts Trading Workforce Amid Subpar Performance
Brevan Howard Asset Management has reduced its trading staff by approximately 7% following underperformance by two major hedge funds last year.
Approximately 12 traders were affected by the cuts, which spanned offices in New York, London, and Abu Dhabi. The firm now employs around 150 traders.
The macro trading firm routinely conducts bi-annual reviews, leading to staff reductions similar to last year's.
Brevan Howard joins Bridgewater Associates and Two Sigma Investments in adjusting staffing levels after a period of rapid expansion. Under CEO Aron Landy, the firm's assets under management have increased from $6 billion in 2019 to $35 billion today, accompanied by a surge in employee count from 150 to over 1,000.
Despite the competitive nature of the industry, the largest investment firms continue to attract top talent due to demand for diversified returns. Brevan Howard declined to comment on the matter.
While the flagship $12.2 billion Master fund gained 5.3% last year, the multistrategy Alpha Strategies hedge fund returned 2.6%. These figures fell below the 11% average return for hedge funds tracked by Bloomberg and the 7% average return for macro money pools.
In the first half of 2022, Brevan Howard implemented cost-cutting measures, including a reduction of approximately 100 employees and the closure of funds managed by Alfredo Saitta and Louis Basger.