Hedge fund giant considers new Swiss office

In a brief statement on Monday the company said: “The parent company of Brevan Howard’s offshore group continually evaluates global business opportunities and is currently evaluating establishing offices in a number of jurisdictions, including Switzerland.”

Private company, Brevan Howard is currently weathering a media storm after a Sunday Times article generated outside interest in the company’s operations. The firm says it has since been inundated with callers, forcing it to divert them to a specialist PR company.

Hedgies tend to avoid the limelight whenever possible. But for Brevan Howard, remaining in the shadows has been difficult. The group boasts assets worth 27 billion francs, and trading operations in a number of cities including Dublin, Tel Aviv and Hong Kong.

Brevan Howard reportedly told the UK’s Financial Services Authority in April 2008 that a more burdensome tax regime could encourage it to move its HQ to the Alps. Chief risk officer, Aron Landy, told Reuters on Friday: “We've been looking to open an office in Switzerland."

Landy said the new office could be for any type or grade of staff, but declined to give details on how many employees would work there.

The Sunday Times suggested that up to 100 staff will be based at a new office in Geneva or Nyon. But one external consultant to the firm, who didn't want to be named, told Swisster: “That’s complete rubbish." The consultant said that sections of the story were part of a sustained effort by the paper to speculate on funds leaving the UK due to changing tax conditions.

But he added that hedge fund managers are intelligent people and obviously plan ahead when “your personal fortune could be decimated” due to new regulations.

Hedge funds discussed the UK’s new 50 per cent marginal tax rate and draft EU regulations on fund managers at an event put on by  Geneva cantonal economic development office in London last week.

However, Landy told Reuters that his plans for the firm were "completely coincidental" with tax and regulatory developments. In other comments, he suggested that whilst company individuals might wish to be based in Switzerland for personal reasons, the current speculation was not about the UK HQ upping and leaving London.

This was backed up by Monday's company statement, which said that “in response to recent press speculation, Brevan Howard Asset Management LLP confirms it has no intention of moving its operations from London.”

Meanwhile a hedge fund industry association is also seeking to downplay the current interest in funds on the move, telling Swisster that “there is no great exodus heading for Geneva”.

Hedge funds have been reported as showing sustained interest in expanding operations into Switzerland, but the “exodus” suggested by the Sunday Times appears to be more of a cautious, steady trickle.

Publicity-shy firms are trying to conduct their business quietly, perhaps for fear of unwanted attention to other activities, or simply to avoid spending too much time on anything other than trying to generate returns in difficult economic circumstances.

Unlike many industry peers, Brevan Howard actually made money last year: the firm’s flagship macro fund was up 20%and has returned 14% in 2009. The company has made four senior appointments this year and is currently in hiring mode, according to at least on industry magazine.

The company was founded in 2003 by a prominent donor to the UK’s Conservative party, Alan Howard, and former bankers from Credit Suisse.