Brevan Howard puts $200M into healthcare-focused hedge fund as multi-managers chase specialist alpha

Brevan Howard, one of the world’s most prominent macro hedge funds, is placing a $200 million bet that someone else can pick stocks better than it can. At least in healthcare.

The London-based firm has allocated the capital to Catalio Capital Management’s healthcare-focused public equities fund, using a separately managed account structure that lets Brevan keep its hands on the risk controls while Catalio handles the actual trading.

Why a macro fund is buying into healthcare stocks

The choice of Catalio isn’t random. The firm, co-founded by George Petrocheilos and Jacob Vogelstein, has posted a 49% net return since its 2023 launch. Its year-to-date performance through October 31, 2025, sits at 12% net.

Catalio manages $2.3 billion in assets and runs both public and private investments across the healthcare sector, covering pharmaceuticals, medical devices, diagnostics, and data companies. The fund’s leadership includes Ben Snedeker, a former D.E. Shaw portfolio manager. KKR is also a major backer of the firm.

The separately managed account structure means Brevan Howard retains visibility into every position Catalio takes, can monitor risk exposure in real time, and can theoretically pull the plug faster than it could if the money were locked in a traditional fund vehicle.

A hedge fund industry in the middle of a structural shift

According to Goldman Sachs, the proportion of multi-manager hedge funds investing capital in external funds has surged from just over 50% in 2022 to nearly 75% by October 2025.