Brevan Howard Asset Management is preparing to allocate capital to external equities hedge fund managers, adding a new category of outside exposure to a platform that has historically deployed its external allocation budget primarily in macro strategies.
Two former UBS Group executives, Michael Dwier and Adolfo Oliete, will lead the programme, sourcing managers in separately managed account structures. Dwier will focus on US-based funds while Oliete will identify long-short equity managers across Europe and Asia. The initiative scales up an existing component of Brevan Howard’s Alpha Strategies multi-strategy fund, extending an external allocation model that previously concentrated on macro exposures including Key Square Group and ARP Global Capital.
Equities trading has been a meaningful contributor to Brevan Howard’s recent performance, helping offset softer results in rates and foreign exchange strategies. The firm has also been expanding its internal equity capabilities, building out sector specialist teams under strategist Abhijit Chakrabortti and maintaining active stock exposure through dedicated portfolio managers. The external equity programme adds an outside sourcing mechanism to that internal build.
External manager allocation has become standard practice across the multi-manager industry. Industry estimates put the share of multi-manager platforms allocating capital to outside managers above 70%, up from just over half in 2022. Qube Research & Technologies operates a comparable programme, using separately managed accounts to access external talent while maintaining position-level transparency and risk controls that commingled fund structures do not offer.
Brevan Howard manages more than $34 billion across hubs in London, New York, Geneva, and Hong Kong, employing over 400 investment professionals globally. With equities having grown as a share of the firm’s alpha generation, external manager allocation through separately managed accounts offers a way to expand that exposure while retaining position-level oversight.