Global macro trading hedge fund firm Brevan Howard Asset Management has reduced its global trading workforce by approximately 7%, impacting about a dozen traders across its offices in New York, London, and Abu Dhabi, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the move follows underwhelming performance from two of its major hedge funds last year.
After the cuts, which are part of Brevan Howard’s routine semi-annual reviews, similar to workforce adjustments made in previous years, the firm will still have nearly 150 traders.
Since 2019, Brevan Howard has grown significantly, increasing its assets under management from $6bn to $35bn and its workforce from 150 to more than 1,000. Despite this growth, the firm has joined industry peers like Bridgewater Associates and Two Sigma Investments in trimming headcount amid rising operational costs and fluctuating performance.
Brevan Howard’s flagship $12.2bn Master Fund delivered a 5.3% return in 2024, while its $11.9bn multi-strategy Alpha Strategies Fund gained 2.6%, according to investor letters. Both funds underperformed the average hedge fund tracked by Bloomberg, which posted an 11% return last year, with macro-focused funds averaging 7%. However, the firm’s smaller BH Digital Fund achieved an impressive 51.3% return.
Last year, Brevan Howard reduced its workforce by 10%, or roughly 100 employees, as part of cost-cutting and operational streamlining efforts. This included the closure of funds managed by prominent traders Alfredo Saitta and Louis Basger, with Saitta departing the firm.
