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Thursday, June 23, 2016

Brevan Howard: Trading with the Highest Standards

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 11

“If there are people in your life who do not support your efforts to become a successful trader, avoid them. Avoid those who express negative energy on a regular basis, and vent their hostilities towards you. Wherever possible, terminate unhealthy emotional relation­ships that cannot be repaired, and if necessary, do it immediately.” - Joe Ross 

Name: Brevan Howard
Industry: Investment management
Products: Hedge funds
Website: Brevanhoward.com

ONE OF THE LARGEST MACRO HEDGE FUNDS
Brevan hedge fund was co-founded in 2002 by 5 experienced traders, although some of the founders have left the firm.

The company was headquartered in Geneva in 2010. It opened an affiliate firm in New York in July 2012, called Brevan Howard U.S. Investment Management LP. In June 2013, the company was reported to be the largest European hedge fund management firm based on its total assets under management of around $40 billion.

The company manages 11 funds and it maintains so high standards for trading success, that some traders who were dismissed from Brevan Howard have become “stars” at other trading companies.

Brevan Howard has donated generously to Imperial College Business School, Alan Howard Scholarships for Energy Futures, and the ARK Bentworth Primary Academy.

What You Need to Know:
1.      According to Wikipedia, the company received $2 billion to manage in the global macro fund from Credit Suisse Private Bank. Under the leadership of Brevan Howard's founding partner, assets grew to $10.5 billion in 2006. The company generated a 25% return in 2007 and returns from their global macro fund continued to perform well during the financial crisis of 2008.

2.      Alan Howard hedge fund has had many glorious years of nice profits, but not without losing years. In some years, the returns in terms of percentage were small and in some years, the losses were small. In some years, the losses were big. However, the firm has been hugely successful overall. Such is trading.

3.      What are Brevan Howard investment strategies?  According to founding partner, Nagi Kawkabani, the firm's overall strategy is focusing on near-term opportunities and establishing investment positions that are maintained for one to six months. As a macro hedge fund the company wants to make gains from broad economic trends and speculates on various assets including commodities and currencies.

This piece is ended with the quote below:

“I suggest, though, that no matter what percentage you choose, consider keeping it the same on all of your trades, because if you don’t you in are, in effect, starting to handicap your trades.  When I cover this point in my webinars some of the attendees say to me,  “I risked a higher  percentage of my account on Trade A then Trade B because A looked better,” to which I respond ,” Why would you enter a trade that looked less than perfect and didn’t meet all of your trade selection criteria?”  The reality of trading, of course, is that we never know which of our individual trades will work out.  We only know that over a series of trades we should win “X%” of the time based on our particular trade selection methodology.” - Lee Bohl (Source: Trade2win.com)




What Super Traders Don’t Want You To Know: Super Traders

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