was going over 2024 returns and Brevan Howard didnt look too hot
Brevan Howard Master Multimanager 5.5%
Brevan Howard Alpha Strategies 2.4%
was curious what was the driver? they are more macro / fixed income so i guess just being wrong ways in that stuff? looks like asset growth was pretty quick over the past few years - so that could be a driver. but curious if any specific strategy a driver.
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It seems like Brevan Howard's 2024 returns, as you mentioned, were indeed underwhelming, with Brevan Howard Master Multimanager at 5.5% and Brevan Howard Alpha Strategies at 2.4%. Based on the most helpful WSO content, macro and fixed income strategies can face challenges when market conditions shift unpredictably or when positioning is misaligned with macroeconomic trends.
Rapid asset growth, as you pointed out, could also dilute returns. This is a common issue for funds that scale quickly, as it becomes harder to maintain the same level of agility and alpha generation. Additionally, if Brevan Howard's strategies were heavily reliant on specific macro themes or trades that didn’t materialize as expected, that could explain the underperformance.
Without more granular details on their specific trades or allocations, it’s tough to pinpoint the exact drivers. However, macro funds often struggle in environments where volatility is low, central bank policies are less predictable, or yield curves behave unexpectedly. If you’re looking for deeper insights, perhaps some of the WSO threads on macro hedge fund strategies could shed more light.
Sources: , Strategies that will continue to flourish?, Macro HF Interviews: Paul Tudor Jones, Louis Bacon and Bruce Kovner, MultiManager PM (Millenium, Balyasny, Schonfeld) minimum requirements, Q&A: PE Associate to MBA to HF Analyst
any other thoughts? besides the bot?
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