Brevan Howard Asset Management paid its partners as much as £128.3 million ($201.3 million) for the 12 months ending in March, a 79% drop from a year earlier as fees plunged.
Fees fell to £236.8 million from £736.3 million, according to a Brevan Howard filing posted Thursday at the U.K.’s Companies House. The London-based manager’s biggest hedge fund, the Brevan Howard Master Fund, had an investment gain of 1% in 2010, down from a 19% return in 2009, according to investors. Brevan Howard generates fees based on fund performance and assets under management.
The $27 billion Master fund had its worst year in 2010 after betting that slowing growth would weaken the euro currency and prompt investors to seek a safe haven in U.S. Treasuries, according to a report sent to clients. Brevan Howard’s bearish view has been proved right this year, leading to a 12.6% gain for the Master fund in the 11 months through November.
Hedge funds have had their second-worst year ever in 2011, falling 4.4% on average amid market volatility stemming from the European sovereign debt crisis, according to Hedge Fund Research. The industry lost a record 19% in 2008.
The average number of Brevan Howard partners for the year ending in March was 52, according to Thursday’s filing. The highest-paid partner received £64.8 million, compared with £267.3 million in the year-earlier period, the filing said. The filing didn’t disclose how much pay founder Alan Howard received. Executives at the firm declined to comment.
Brevan Howard oversees $37 billion in six hedge funds, including a credit fund, an emerging markets fund, a commodities fund and a pool focused on Asian investments. In October, Brevan Howard said it would return about $2 billion of capital to Master fund investors to keep the fund’s assets at $25 billion.