(Bloomberg) -- The Alan Howard era at Brevan Howard Asset Management appears to have come to an end.

The veteran investor, whose macro trading prowess made him a billionaire, is no longer managing a significant amount of money for the firm, according to people with direct knowledge of the matter. While Howard had already transitioned out of the day-to-day running of the firm in 2019, he was still managing his own fund, some client money and about a 10th of the capital in the firm’s main strategy as recently as last year.

The shift coincides with Chief Executive Officer Aron Landy’s efforts to cut reliance on individuals and broaden the firm’s return streams -- a strategy that has helped the firm draw clients and assets once again and bolster returns. 

“Everything that I’m doing is focused on a clear vision to develop Brevan Howard into a diversified alternative asset manager and specifically to diversify away from too much dependency on key individuals and a single strategy,” Landy said. “I feel like we made massive progress.”

Landy said the firm has more than 100 money mangers who collectively run about $20 billion in capital. That’s up from 30 in 2019 when Howard quit overseeing the firm to focus on trading.

Last May, Howard decided to return money to investors in the hedge fund he ran personally. At the time, it wasn’t clear if he was shutting the fund altogether, and people with knowledge of the matter said he would continue to manage capital for the firm. The fund dropped out of the monthly newsletter of the firm’s flagship fund at the start of 2022, according to a document seen by Bloomberg.

The fund, which was designed to take big bets, doubled investors cash during the early days of the pandemic. Howard considered raising additional money in 2020 before reversing course last year.

While he’s cut back on the macro trading, Howard remains closely involved with Brevan Howard’s expansion into digital assets, which the firm sees as a promising macro asset class, according to the people.

Stars Fading

The transition marks a turning point for Brevan Howard’s succession planning, and underscores the broader shift in hedge funds away from star individual managers. Investors have been plowing money into so-called multistrategy funds, which offer an army of traders who take varying approaches.

It also comes at a time when macro trading is making a roaring comeback, with central banks around the world racing to raise rates to contain spiraling inflation.   

During this volatility, Brevan Howard has generally reaped the rewards. The firm has more than tripled its assets from a trough of about $6 billion in late 2018, though it remains below its peak of $40 billion. It has $3.5 billion committed through a co-investment program, which allows key clients to invest with the firm when it spots opportunistic trades.

And the macro trading firm is off to one of its best years of gains since it was founded two decades ago. Its flagship $9 billion hedge fund was up about 11% through April 8, according to an investor document seen by Bloomberg. Macro hedge funds were up an average 5.4% during the first quarter, Bloomberg data shows.

Brevan Howard’s traders such as Fash Golchin, Louis Basger, Minal Bathwal, Alfredo Saitta and Ville Helske, who all run their own strategies and manage money for the main fund, were the driving forces behind the gains.

A spokesman for the Jersey, Channel Islands-based investment firm declined to comment on returns. 

Landy’s Overhaul

Howard started the hedge fund firm that bears his name in 2002 with four other traders from Credit Suisse Group AG’s proprietary fixed-income trading desk. The first part of the company name comes from the initials of founders Jean-Philippe Blochet, Chris Rokos, James Vernon and Trifon Natsis.

Landy had been at the firm almost from the start, and was chief risk officer before his elevation to CEO. Howard handpicked Landy to transform the investment firm after years of poor returns and outflows, giving him freedom to make changes.

Brevan Howard has now expanded to offer more than 10 products, adding liquid credit and systematic trading strategies to its famed macro, rates and relative value strategies.

It’s also building BH Digital to take advantage of rising institutional interest in emerging online assets. The firm has contributed $250 million in assets and grown the team to more than 50 people.

Meanwhile, the firm has opened new sites in Cayman Islands, Tel Aviv, Paris and Chicago this year to take its global offices to 12. It’s also planning to start trading operations in Dubai, Landy said.

Brevan Howard’s transformation “is well underway through the growth in the assets and the portfolio managers and that will continue,” Landy said.

©2022 Bloomberg L.P.