July 18, 2008

Perella Weinberg Partners' Xerion hedge fund rose 24 per cent this year, helped by wagers that the value of investment-grade bonds of financial-services firms would fall, according to a letter sent to investors. The USD837 million fund, which invests in the shares and debt of troubled companies, has far outstripped competitors, which have lost 1.6 percent on average in the first half of 2008, according to Chicago-based Hedge Fund Research Inc.

Brevan Howard Asset Management, one of Europe's biggest hedge fund managers with USD24 billion under management, has established multiyear incentive structures, according to a report in the the Wall Street Journal. In a bid to reduce undue risk-taking among traders, who are tempted by hopes of a bonus boost, Brevan Howard will deliver annual payouts in segments over a multiyear span— with the right to hold back some of the bonus in case of underperformance.