Brevan Howard partners reap £113.3m from fee income gain
Divisible profits available to the 39 partners of Europe's largest hedge fund manager, Brevan Howard Asset Management, soared last year to £113.3m (€131.6m) after fee income at the London-based firm more than doubled.
According to financial statements filed at Companies House, Brevan Howard's operating profit for the year to July 31 2008 was £502.9m, which was 57% more than the £216.2m it made a year before.
The sharp rise came as fee income the firm generated more than doubled - from £227.4m to £530.3m, as the firm bucked the industry's losing streak.
As a result of its rise in fee income and profit, divisible profits available to members increased dramatically from £7.6m to £113.3m. This will be split between 39 partners including the two sole designated members, Alan Howard and James Vernon.
Howard, who was among the group's founders in 2003, is the fund's largest shareholder. Vernon is a founding partner of the firm.
Although Companies House does not break down the performance of Brevan Howard's funds in its financial year, its flagship global macro fund made 23% for its investors in 2008 according to investors. In comparison, its strategy peers made 4.8%, said analyst Hedge Fund Research.
Meanwhile, its strong performance has continued in 2009. In the first four months of this year, the $14.9bn (€10.5bn) fund made a further 9.8%, investors said.
In contrast, about 80% of hedge funds presently cannot charge a performance fee, according to database Eurekahedge.
By the start of this year BHAM had $26.8bn assets, according to industry publication Institutional Investor.
Brevan Howard did not comment in time for publication.
-- write to mturner@efinancialnews.com
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