Brevan Howard is making money for its billionaire co-founder Alan Howard and other partners through more than just hedge fund fees. The investment firm best known for running macro trading strategies has persuaded the likes of SoftBank Group Corp., hedge fund Penso Advisors and 15 others to use its high-tech operational infrastructure that once only served as the trading backbone for Brevan Howard’s more than $40 billion in assets.

The Brevan Howard platform, which was spun off in 2018, is similar to the pioneering Aladdin software that BlackRock Inc developed. The unit, called Coremont LLP, has grown to service more than $50 billion in assets for mainly alternative money managers trading anything from stocks and bonds to cryptocurrencies, Jev Mehmet, its chief executive officer, said in an interview.

For Brevan Howard, the additional revenue — a few basis points of every $100 that goes through Coremont — is a vital source of fees after it saw a vast majority of its hedge fund assets flee since the peak in 2013. Assets have only now started to rebound from a low of about $6 billion two years ago after the firm posted one of its best-ever gains last year.


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Source: BNN Bloomberg

By Nishant Kumar