Brevan Howard is poised to significantly expand its equities operations by funding external stock traders. This move follows a period where the firm’s equities business has been a crucial driver of its overall performance, compensating for losses in its traditional rates and currencies strategies. The hedge fund's Master Fund was up 3.7% through May 15th, while its BH Alpha Strategies Fund saw a 4.2% increase over the same period, largely due to successful equities trading.
The firm's recent success in equities is particularly noteworthy given that it operates an unusual structure without a dedicated head of equities. Instead, star portfolio manager Fash Golchin, historically a multi-asset macro trader, has been instrumental in the equities' strong performance. Additionally, Abhijit Chakrabortti, who joined in January 2023 from Duquesne, has been building a team of equity sector specialists to filter trade ideas for portfolio managers.
Historically, Brevan Howard built its $35 billion empire on macro strategies, particularly in rates and currencies. However, these areas have consistently lagged, with the rates desk recording its steepest quarterly decline in at least five quarters in Q1 2026. This has prompted the firm to increasingly rely on its equities desk, turning what was once a quiet operation into a key profit center. The firm has traded equities for two decades but has recently bolstered its positions and personnel in this area, including the recent addition of emerging markets equities portfolio manager Christoph Brinkmann from BlackRock.
This strategic pivot comes amidst a broader trend in the financial industry, where tokenized stocks are gaining traction. The aggregate market cap of tokenized equities surged from under $30 million in early 2025 to approximately $1.2 billion by the end of that year. The SEC is also preparing an “innovation exemption” framework, expected around May 18-19, 2026, to allow more flexible trading practices for tokenized securities. The Depository Trust and Clearing Corporation (DTCC) plans to begin limited production trades of tokenized assets by July 2026, with BlackRock, JPMorgan, and Goldman Sachs involved in the initial rollout. However, firms like Citadel Securities are advocating for stringent intermediary regulations, potentially making tokenized stocks an upgrade to the existing system rather than a disruptive force.
