Brevan Howard to launch structured credit fund
UK - Brevan Howard Capital Management, which manages more than $32bn (€22.8bn) across 13 funds, is planning to launch a structured credit fund called BH Credit Catalysts.
The fund, which will be listed on the London Stock Exchange, will be a closed-end, Guernsey-incorporated investment company.
Brevan Howard said the fund would aim to achieve high absolute returns through "catalyst-driven trading" - as opposed to on a buy-and-hold, deep value or carry basis - across corporate and asset-backed credit markets.
Stop losses will be applied to individual trades, as well as at the trader and fund levels, it said.
DW Investment Management, a New York-based credit manager that runs money exclusively for Brevan Howard, will serve as investment manager.
Nagi Kawkabani, chief executive at Brevan Howard Asset Management, said the opportunities for a trading strategy in the credit markets was significant, as "the market is large and there is not enough risk capital available".
The fund will offer US dollar, euro and sterling share classes, but other currencies could be added depending on demand.
The fund will carry a 2% management fee, as well as an annual 20% performance fee, subject to a high-water mark.