Five credit portfolio managers depart Brevan Howard amid market volatility

Five credit portfolio managers have recently left Brevan Howard Asset Management, contributing to industry-wide pressure during heightened market volatility, according to Bloomberg. The managers who departed are Simon Gee, Jenna Collins, Adam Steer, Chris Watson, and David Heinau. These departures come after news that Brevan Howard's credit trading head, Andy Silver, is stepping down to serve as an advisor, though this move is not connected to the recent exits.

Brevan Howard's Alpha Strategies Fund saw a 1% decline in October, wiping out the fund's year-to-date gains. In contrast, its flagship Brevan Howard Master fund returned a modest 0.4%, bringing its year-to-date losses down to 0.2%. Credit markets have been grappling with concerns over AI-related borrowing, rising interest rates, and geopolitical uncertainty. European high-yield spreads have surged to levels last witnessed during the 2009 financial crisis.

Such volatility poses challenges for multistrategy hedge funds, as they strive to expand credit trading operations while adhering to strict risk controls. Additionally, Millennium Management recently withdrew over $1.5 billion from two external hedge funds, including Axebrook Capital. Meanwhile, credit specialist Arini was on track to record its largest monthly loss.