A struggling hedge fund has reportedly suffered about $1 billion in outflows

One-time hedge fund titan Brevan Howard Asset Management has suffered about $US1 billion in outflows, according to a Bloomberg News calculation based on recent investment letters from the firm.

The firm’s assets are currently at about $US8.7 billion, down from $US10 billion, Bloomberg reported. The fund is run by billionaire Alan Howard.

That’s a stark fall for the firm, which as recently as 2013 managed $US40 billion.

Investors have been pulling money from the fund for years as the fund posted lacklustre returns.

Last year, investors were bracing for billions in more redemptions and the firm was bracing for a “worst case scenario” in contingency planning should assets drop further, Business Insider reported.

Brevan was down 3.1% for the first four months of the year, after returning 3% last year, Bloomberg reported.

The outflows come as Brevan spinouts, such as Rokos Capital Management, plan to double in size. Others, like Ben Melkman’s Light Sky Macro, have been expanding, too. New York-based Light Sky Macro now manages a little over $US1 billion, according to a person familiar with the situation.

An external spokesperson for Brevan Howard declined to comment.

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