Jersey-headquartered hedge fund firm Brevan Howard Asset Management is preparing to open a Tokyo office this summer, as part of a broader push to tap trading opportunities in Japan’s resurgent markets, according to a report by Bloomberg.

The hedge fund firm plans to initially operate from temporary space in the Shin-Marunouchi Center Building while it searches for a permanent location in a constrained office market. At the same time, it is actively recruiting investment professionals, including traders focused on Japanese government bonds, yen swaps and rates volatility strategies, according to sources familiar with the plans.

The expansion marks a return to Tokyo for Brevan Howard, which previously maintained a small research presence in the city in the mid-2000s. The new office, however, signals a more substantive commitment, with investment and trading capabilities on the ground.

The move comes amid renewed global interest in Japan as inflation returns, revitalising domestic rates markets, and corporate governance reforms continue to support investor returns and deal activity. Tokyo has been positioning itself as a stronger financial hub, competing with other major Asian centres.

Brevan Howard joins a growing list of alternative asset managers and global firms increasing their footprint in Japan or building dedicated teams, amid improving market conditions and rising demand for local expertise.

The firm manages approximately $11.7bn in its flagship Master Fund and $11.3bn in its Alpha Strategies Fund. It reportedly declined to comment on the expansion plans.