The London Pensions Fund Authority (LPFA) has pulled its entire hedge fund allocation with manager Brevan Howard over concerns around transparency.
According to reports, LPFA, which has £4.69bn in assets under management, redeemed its £61m holding in Brevan Howard in April last year after the manager refused to provide a detailed breakdown of its trading positions.
It comes at a time when the UK government is consulting on proposals to move the Local Government Pension Scheme’s (LGPS) £89bn of actively managed listed assets to passive common investment vehicles (CIVs) in order to save on costs charged by active managers, including hedge funds.
LPFA did not respond to a request for comment before this article was posted
Brevan Howard is the world’s third largest hedge fund with about $40bn under management.
Earlier this year the firm’s co-founder Alan Howard used his year-end letter to issue an apology to investors, describing its 2.6% return for 2013 as “somewhat disappointing”.
Brevan Howard declined to comment.
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