Brevan Howard Asset Management is preparing to start investing in digital assets, becoming the latest money management company seeking to capitalize on the cryptocurrency boom.
According to people familiar with the matter, the company led by Aron Landy will first use up to 1.5% of its $5.6 billion major hedge fund's assets to invest in digital assets. The initial distribution will be overseen by Johnny Steindorff and Tucker Waterman, co-founders of the crypto investment company Distributed Global.
A Brevan Howard spokesperson declined to comment.
This move is a new signal that cryptocurrencies are becoming mainstream, as Howard Asset Management is betting on digital assets with billionaire hedge fund managers Paul Tudor Jones and Marc Lasry. On Wednesday (April 14), the crypto exchange Coinbase Global Inc. went public, with a valuation exceeding US$112 billion.
The person familiar with the matter said that Howard Asset Management's fund will bet on rising digital asset prices and will focus on a wide range of areas beyond Bitcoin.
Brevan Howard is no stranger to digital assets. Brevan Howard co-founder Alan Howard used his personal funds to invest in cryptocurrencies. The company recently acquired a 25% stake in One River Asset Management. One River manages assets valued at 2.5 billion U.S. dollars, and its cryptocurrency fund is backed by Howard.
People familiar with the matter said the billionaire has been an investor in Distributed Global since the beginning of 2018. The company also cooperates with Singapore Temasek Holdings Pte to operate a crypto venture capital fund. All transactions will be conducted through Elwood Asset Management, an affiliate platform that Howard founded four years ago.
Brevan Howard is known for his strong macro trading capabilities. After experiencing record annual revenue growth, the company is in expansion mode. Investors who abandoned the company after years of mediocre returns are making a comeback: its assets under management plummeted by more than 80% from its peak two years ago to around US$6 billion, and has since rebounded to more than US$13 billion.
The company's main fund is managed by a group of traders, including Howard himself, Fash Golchin, Alfredo Saitta and Minal Bathwal. Last year, the company's annual return rate reached 27.4%, the highest level since 2003.