Brevan Howard Reduces Risk Limits Due to Performance Decline

Brevan Howard Asset Management, a macro hedge fund expert, is reducing risk limits for its traders following a performance decline that wiped out last year's gains. According to sources anonymous to Bloomberg, CEO Aron Landy implemented these defensive measures in response to increased volatility and market instability.

The firm's flagship Master Fund, valued at $11.7 billion, experienced a 1% loss in the first week of March, raising its total loss for the year to 5.4%. In contrast, the fund gained 5.1% last year. Another major fund, Alpha Strategies, also reported a 0.8% decline that week, reducing its 2025 earnings forecast by 1.5%. Based in Jersey, the firm, co-founded by billionaire Alan Howard, is known for its positions on interest rates and currency exchange, and it faces challenges from geopolitical turmoil and asset volatility.