Brevan Howard Asset Management has pulled the plug on its relationship with US hedge fund firm Commonwealth Asset Management after a $1 billion separately managed account it advised on suffered losses last month, according to a report by Bloomberg.

Brevan Howard Asset Management has pulled the plug on its relationship with US hedge fund firm Commonwealth Asset Management after a $1 billion separately managed account it advised on suffered losses last month, according to a report by Bloomberg. 

The report cites unnamed sources familiar with the latter as revealing that Jersey-based Brevan Howard terminated the arrangement after a series of bets on short-term interest rates went awry resulting in a steep drop in the macro trading money pool.

A separate Commonwealth hedge fund following a similar strategy to the Brevan Howard account lost about 17% in March, but has recouped the majority of those losses this month, according to a Bloomberg source. 

Brevan Howard’s master fund posted a record monthly decline, in March as macro traders were hit hard by the market volatility triggered by the collapse of Silicon Valley Bank.