19 Apr 2010
Philippe Lespinard has left Brevan Howard, less than two years after joining the firm to spearhead its move into on-shore absolute return strategies. Lespinard, who also oversaw the firm’s UCITS III funds, is the latest in a series of departures from that part of Brevan Howard.
The move will raise eyebrows as many hedge funds continue to launch or consider launching funds with a UCITS III wrapper. Brevan Howard itself is launching an emerging market bond fund later this year managed by some traders who also manage emerging market fixed income in the flagship Brevan Howard Mater Fund.
This marks a change in approach to the UCITS sector for Europe’s biggest hedge fund group. When Brevan first launched the Absolute Return Bond Plus fund it recruited a team from Aberdeen Asset Management, preferring to keep separate hedge fund and UCITS portfolio teams.
The change in personnel and strategy has occurred against a mixed backdrop.
The Macro FX UCITS recently passed the $500 million mark in assets under management after launching with $200 million in June, 2009. It has delivered positive performance at a time when currency volatility has been high.
Alongside that success, however, Brevan Howard has moved to restructure the Absolute Return Bond Plus fund, a move that saw three of the five team members recruited from Aberdeen leave the firm. The bond fund was seeded with about $250 million but has struggled to attract substantial new allocations.
Lespinard joined Brevan Howard in May 2008 to head the firm’s expansion into the Ucits funds sector. He has been chief investment office at BNP Paribas Asset Management.
A spokesman for Brevan Howard refused to comment on Lespinard’s departure. However, records held by the Financial Services Authority show that Lespinard’s approved person registration ceased on March 31.
The move will raise eyebrows as many hedge funds continue to launch or consider launching funds with a UCITS III wrapper. Brevan Howard itself is launching an emerging market bond fund later this year managed by some traders who also manage emerging market fixed income in the flagship Brevan Howard Mater Fund.
This marks a change in approach to the UCITS sector for Europe’s biggest hedge fund group. When Brevan first launched the Absolute Return Bond Plus fund it recruited a team from Aberdeen Asset Management, preferring to keep separate hedge fund and UCITS portfolio teams.
The change in personnel and strategy has occurred against a mixed backdrop.
The Macro FX UCITS recently passed the $500 million mark in assets under management after launching with $200 million in June, 2009. It has delivered positive performance at a time when currency volatility has been high.
Alongside that success, however, Brevan Howard has moved to restructure the Absolute Return Bond Plus fund, a move that saw three of the five team members recruited from Aberdeen leave the firm. The bond fund was seeded with about $250 million but has struggled to attract substantial new allocations.
“Despite positive performance, we have seen little investor interest for this product,” Brevan Howard said in a recent update on its UCITS funds to investors. “We are evaluating an investment strategy more closely aligned with the core investment exposures of our Master Fund in response to investor feedback.”
Lespinard joined Brevan Howard in May 2008 to head the firm’s expansion into the Ucits funds sector. He has been chief investment office at BNP Paribas Asset Management.
A spokesman for Brevan Howard refused to comment on Lespinard’s departure. However, records held by the Financial Services Authority show that Lespinard’s approved person registration ceased on March 31.
