Billionaire hedge fund manager Alan Howard says there will be “exceptional opportunities” to make money in 2016 because of divergent monetary policies and as four years of low market volatility comes to an end.
A slowdown in global growth appears to be accelerating and if the trend continues central banks could find it increasingly difficult to support capital markets, Howard, 52, wrote in a letter to shareholders in BH Macro Ltd., a listed fund that invests in Brevan Howard Asset Management’s main macro hedge fund.
“I believe that some exceptional opportunities are likely to present themselves in this environment of regime shift and dislocation," Howard said in the letter released Friday.
Brevan Howard Master Fund suffered a record monthly loss in December as markets were blindsided by the European Central Bank and ended the year down 2 percent, its second successive annual decline, a person familiar with the matter said this month.
Howard said the U.S. Federal Reserve increasing borrowing costs presents trading opportunities at a time the ECB and the Bank of Japan, among others, have room to further cut rates.
“The central bank policy divergence that we have been anticipating for over a year has now finally arrived and I am confident that this will materially improve the opportunity set for us," he said.