August 22, 2018 / 12:55 PM / 3 months ago

Britain's Brevan Howard readies new hedge fund-sources

LONDON, Aug 22 (Reuters) - Brevan Howard Asset Management plans to launch a new hedge fund betting on shifting monetary policy, two sources familiar with the matter said, as a decade of money printing by central banks and zero interest rates comes to an end.

The new fund, to be led by interest rates trader Fash Golchin, is the third to be launched by an individual portfolio manager at the firm founded by billionaire Alan Howard in recent months, the sources said. They will all bet on diverging central bank strategies across the globe, the sources added.

The new funds follow strong performance gains in 2018 at Brevan Howard after the firm was plagued by poor returns and investors pulling cash in recent years.

Its main hedge fund, which manages $3.5 billion in assets, was up 9.4 percent in the year to July 31, said one of the sources, who is close to the firm. That followed losses of 5.4 percent in 2017, according to research compiled by HSBC.

Macro hedge funds lost 1.8 percent on average over the same time period in 2018 after a 2.2 percent gain in 2017, data from industry tracker Hedge Fund Research showed.

Golchin’s new fund is set to launch in September or October and will charge a 1 percent management fee and 20 percent performance fee, said the sources.

Two other prominent Brevan portfolio managers, Alfredo Saitta and Minal Bathwal, each recently launched a macro fund betting on monetary policy. Those funds are now running assets of $750 million and $660 million, the sources said.

Golchin joined Brevan Howard in Geneva, Switzerland from Citigroup in 2011. (Reporting by Maiya Keidan Editing by Gareth Jones)

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