Winning interest rate bets helped drive gains at an investment vehicle managed by hedge fund Brevan Howard during 2022 as market volatility and soaring inflation prompted central banks to hike interest rates, according to a report by Reuters.
Winning interest rate bets helped drive gains at an investment vehicle managed by hedge fund Brevan Howard during 2022 as market volatility and soaring inflation prompted central banks to hike interest rates, according to a report by Reuters.
The report cites a recent investor presentation by Brevan Howard Capital Management as highlighting how a surge in global borrowing costs helped BH Macro, a publicly listed feeder to the firm’s master fund, chalk up a 21.93% performance gain last year in the sterling denominated share class.
That marked the third best annual return for BH Macro, which has assets worth £1.4 billion and is listed on the London Stock Exchange, since its launch back in 2007.
Most of BH Macro’s profit came from winning bets on US interest rates and positions related to inflation, volatility and European rates. The fund also saw a small gain from its foreign exchange trading positions, the presentation showed.
