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Brevan Howard co-founder Rokos takes on hedge fund again
By Reuters
Tuesday, August 26, 2014 Email this story  |  News Tracker  |  Reprints  |  Printable Version

LONDON (Reuters)Brevan Howard co-founder and star trader Christopher Rokos has again rejected curbs designed to prevent him setting up a firm to rival the hedge fund he left in 2012, court documents obtained by Reuters showed on Tuesday [Aug. 26].

Rokos filed a lawsuit against Brevan Howard (Jersey) LP in May to try and overturn an agreement that restricted him from starting his own fund and raising money from investors until 2018.

Brevan Howard rejected his initial legal challenge earlier this month. Rokos filed a second suit on Aug. 22, repeating his original demands and seeking the dismissal of a counterclaim by the hedge fund, court documents seen by Reuters showed.

"It is denied that the respondent (Brevan Howard) is entitled to the relief claimed in the counterclaim or any relief," a Jersey court was told in the new filing.

The case is giving a rare insight into one of Europe's largest hedge funds and highlights business risks that many high profile funds face when a top trader strikes out on their own.

Rokos, 43, has spent the time since leaving the hedge fund running a family office in London to manage his own money.

The new documents show Rokos contributed nearly $1.3 billion to the profit of Brevan's flagship fund in the last full year before he left in mid-2012.

Brevan Howard managed $36 billion at the end of July, the fund firm said in letter to investors obtained by Reuters, making it one of the largest hedge funds in Europe.

Alan Kilkenny, a spokesman for Rokos, declined to comment.

Brevan Howard has argued that Rokos is seeking to avoid "obligations and responsibilities" designed to protect the hedge fund's business, goodwill and reputation, because "they no longer fit with his current wishes."

The $25.8 billion Brevan Howard Master Fund has never lost money in a calendar year since its launch in 2003, according to the letter to investors.

It returned 20.4 percent in 2008 when a global financial crisis wiped billions of dollars off financial markets, luring investors and more than doubling the firm's assets under management since then.

The fund has had a tough 2014. It lost money every month in the first half of the year, but gained 0.7 percent in July to cut 2014 losses to 3.7 percent.

By Nishant Kumar

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