Word Monday that Brevan Howard Asset Management was closing its emerging-markets fund hit a nerve with other fund managers focusing on developing economies, many of whom have had a tough start to the year.
Brevan, the Geneva-based hedge fund company with roughly $40 billion under management, opted in recent days to close its Emerging Markets Strategies Fund, which sustained losses of 15 percent last year, according to hedge fund reports and people familiar with the matter. Its manager, a hedge fund veteran named Geraldine Sandstrom, is leaving the company.
Other hedge fund managers and the banks who serve them said that Brevan's setbacks underscored a tough period in emerging markets, a corner of the global trading arena that is known for volatility. Emerging markets were the worst-performing niche in the broader hedge fund industry in January, according to HFR, which reported that the group experienced an average downturn of 2.6 percent that month, vs. flat performance for funds in general.