Is Brevan Howard Macro a good investment?

Holding Brevan Howard, a world-leading vehicle through an investment trust, offers diversification on the cheap

Brevan Howard Asset Management LLP Offices
(Image credit: Jason Alden/Bloomberg via Getty Images)

The closed-ended nature of investment trusts makes them perfectly suited to holding alternative assets, such as infrastructure, real estate or private equity investments. These assets are not usually available to private investors, but they are via the investment trust structure. This allows smaller investors to diversify their portfolios into different asset classes with an initial investment of just a few hundred pounds (compared with the hundreds of millions usually required to invest directly).

With their fixed pool of capital, investment trusts are also perfectly suited to holding portfolios of liquid investments following alternative strategies. Unlike open-ended funds, which have to buy and sell investments to match daily cash flows, trusts always have a fixed pool of capital, giving managers flexibility to pursue differentiated strategies that might take time to pay off.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.