Brevan Howard Asset Management has established Abu Dhabi as its primary risk-taking center, enhancing the city’s reputation as a burgeoning hedge fund hub, managing approximately $10 billion from the emirate’s international financial free-zone. This constitutes nearly a third of its total assets, surpassing its management from London or New York.
Since opening its office in the Abu Dhabi Global Market last February, Brevan Howard has expanded its local team to over 80 members. Notably, the firm is exploring the addition of a new floor to accommodate the growing staff. Prominent portfolio managers, including Ville Helske and Louis Basger, have relocated to Abu Dhabi, alongside key team members managing funds under the European Union’s UCITS Directive.
The aggressive expansion by Brevan Howard aligns with Abu Dhabi’s push to become the “capital of capital,” successfully attracting major players in the financial industry, such as Ray Dalio, Chris Hohn’s TCI Fund Management, and Greg Coffey’s Kirkoswald Asset Management. Billionaire Alan Howard’s endorsement last year as he envisioned Abu Dhabi becoming a global financial center further underscores the city’s appeal.
The emirate’s attractiveness lies not only in its sovereign wealth funds and adherence to English law but also in its tax advantages and favorable time zone. Abu Dhabi’s financial free-zone boasted 102 asset managers by the end of the last year, overseeing $452 billion globally.
Brevan Howard initiated its Abu Dhabi presence with senior strategist Abhijit Chakrabortti in January last year and now houses a significant portion of the firm’s digital assets trading team. Oualid Lahsini, formerly a partner at Ares Management Corp., has been appointed CEO of Brevan Howard’s Middle East business.
As one of the world’s premier macro hedge funds, Brevan Howard’s recent bet on falling US interest rates led to an estimated 3.2% loss in its main fund in February. Despite this setback, the firm’s bold move to build a $10 billion hub in Abu Dhabi positions it at the forefront of the evolving global financial landscape.
