Hedge Funds

Brevan's credit spin-out spreads its bets


It is one thing to have made money in the rallying credit markets this year, but another to have done so with tight risk management and liquidity constraints, and without running a heavily net long portfolio.

Brevan Howard's newly spun-out Credit Catalysts Fund - managed from New York by a 20-strong team headed by former Morgan Stanley credit trading managing director David Warren - has done just that.

Although the fund formally launched in June as a standalone entity, the strategy has gained an estimated 24% net of fees to the end of September, with its short positions