For billionaire Alan Howard, the coronavirus crisis has been a huge difference maker.
In a good way.
According to Bloomberg News, the co-founder of Brevan Howard has delivered a massive 100% return so far this year for investors in the hedge fund he personally manages — that’s better than all other major macro hedge funds and one of the best stretches of his career.
Alan Howard’s fund, with the backing of a handful of external investors, was launched in 2017 with the aim of taking big risks and achieving big returns.
Since the details of the fund’s strategy aren’t divulged, it’s not clear what drove the triple-digit jump, but one source told the Financial News that the strong showing for Brevan Howard’s main hedge fund, which rallied 18% in March, stems from bets on fixed-income, currencies and rates trading.
For some perspective on what an accomplishment that return is, consider that three out of every four hedge funds in the U.S. lost money in March, Bloomberg data showed. And that includes the likes of such high-profile Wall Street names as Bridgwater’s Ray Dalio.
The strong run has contributed to a turnaround for Brevan Howard, which saw its firm-wide assets drop below $8 billion last year, down from $40 billion in 2013. The money is starting to flow back in, with the last tally reaching $9.6 billion, Bloomberg reported.
Meanwhile, the stock market keeps rebounding from the lows earlier this year. The Dow Jones Industrial Average
, the S&P 500
and the tech-heavy Nasdaq Composite
all closed the books on a strong week and month on Friday, buoyed by optimism over the easing of lockdowns and a supportive Federal Reserve.