30 Jun 2010
The drain of London’s top hedge fund managers to Geneva has intensified with the departure of Alan Howard, a co-founder and the lead manager of Brevan Howard, to Geneva where he will continue in a full-time role. Brevan Howard, Europe’s biggest hedge fund with assets under management of $30 billion, opened its office in the city earlier in June.
In a release to the London Stock Exchange, the closed-end listed fund BH Macro Limited, which invests in the Brevan Howard Master Fund, said that Howard had left London and will continue to work full-time for the Geneva branch of Brevan Howard Investment Products Limited. His departure means that Nagi Kawkabani becomes the solo chief executive of Brevan Howard Asset Management LLP after having shared the role with Howard since December 2003.
The firm’s opening of an office in Geneva and Howard’s relocation there has been under development for much of the past year. Brevan Howard secured space for the Geneva office in the fourth quarter of 2009 and announced in early 2010 that it would be commencing operations there my mid-year.
In addition to the expected tax advantages of relocating to Geneva from the UK, it is understood that Howard has also undertaken the move for lifestyle reasons. Howard’s wife is French and his children are said to be fluently bilingual. The family has had a residence near the city for many years and Howard badly wrenched his shoulder in a tobogganing accident during a vacation there in 2008. It has been observed that the incident stands in stark contrast to the strict risk control limits Howard insists on for investment positions in the Brevan Howard Master Fund.
Howard’s relocation brings to three the number of traders that the firm has in Geneva. It is possible that up to seven traders will be relocated to the City by the end of the year along with some support staff. The Geneva office is said to have physical capacity for around three dozen personnel.
Though the departure of Howard is a blow to London’s standing as a hedge fund centre, Brevan Howard will still be keeping on around 250 employees in the UK. It currently operates offices in six other locations, including Jersey (27 employees), Tel Aviv (25), Hong Kong (24), Washington (5), Dublin (1) and New York City (10).
Brevan Howard and BlueCrest Capital Management, among other hedge funds, have embraced Geneva for its combination of lower taxes and its offshore regulatory status. Both firms have said that opening offices in Geneva gives them a competitive advantage in how operations are run on a global basis.
In a release to the London Stock Exchange, the closed-end listed fund BH Macro Limited, which invests in the Brevan Howard Master Fund, said that Howard had left London and will continue to work full-time for the Geneva branch of Brevan Howard Investment Products Limited. His departure means that Nagi Kawkabani becomes the solo chief executive of Brevan Howard Asset Management LLP after having shared the role with Howard since December 2003.
“Mr Howard continues in his role as the principal risk taker in the Brevan Howard Master Fund and his capital allocation and risk limits, as well as his wider responsibilities in relation to BHMF, remain unchanged,” BH Macro said in a statement. Brevan Howard informed the Financial Services Authority of Howard’s change in regulatory status on Monday.
The firm’s opening of an office in Geneva and Howard’s relocation there has been under development for much of the past year. Brevan Howard secured space for the Geneva office in the fourth quarter of 2009 and announced in early 2010 that it would be commencing operations there my mid-year.
In addition to the expected tax advantages of relocating to Geneva from the UK, it is understood that Howard has also undertaken the move for lifestyle reasons. Howard’s wife is French and his children are said to be fluently bilingual. The family has had a residence near the city for many years and Howard badly wrenched his shoulder in a tobogganing accident during a vacation there in 2008. It has been observed that the incident stands in stark contrast to the strict risk control limits Howard insists on for investment positions in the Brevan Howard Master Fund.
Howard’s relocation brings to three the number of traders that the firm has in Geneva. It is possible that up to seven traders will be relocated to the City by the end of the year along with some support staff. The Geneva office is said to have physical capacity for around three dozen personnel.
Though the departure of Howard is a blow to London’s standing as a hedge fund centre, Brevan Howard will still be keeping on around 250 employees in the UK. It currently operates offices in six other locations, including Jersey (27 employees), Tel Aviv (25), Hong Kong (24), Washington (5), Dublin (1) and New York City (10).
Brevan Howard and BlueCrest Capital Management, among other hedge funds, have embraced Geneva for its combination of lower taxes and its offshore regulatory status. Both firms have said that opening offices in Geneva gives them a competitive advantage in how operations are run on a global basis.
