Firm to scale back after worst monthly loss since June 2008.
Bloomberg News reports that two Brevan Howard credit traders left in recent weeks, as the firm scales back after its biggest hedge fund had the worst monthly loss since 2008 in June, two people with knowledge of the matter said.
Wayne Leslie, 38, departed less than a year after joining the London-based hedge fund from Goldman Sachs where he was a managing director responsible for European investment-grade credit trading, said the people, who asked not to be identified because the departures haven’t been made public. Jason Feasey, 40, who focused on structured credit, had joined the hedge fund from Bank of America in 2011.
At least a dozen traders have left Brevan Howard, Europe’s second-largest hedge fund firm, since the end of May as the firm struggles to profit in markets roiled by the U.S. Federal Reserve’s indication that it may reduce its purchases of fixed-income assets. The Master Fund, which accounts for more than two-thirds of Brevan’s $40bn of assets, fell 2.9% in June, its worst month since September 2008. The pool declined another 0.9% in July, cutting gains for the year to 3%, a performance report obtained by Bloomberg News shows.
'The very successful macro funds run like a prop-trading unit at a bank in that they farm out money to various people,' said Jacob Schmidt, founder of London-based Schmidt Research Partners Ltd., which carries out due diligence on hedge funds for investors. 'It’s a very disciplined exercise where they give you money if you make money. If you don’t make money, it’s ‘See you later.’'
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