Brevan Howard, one of London's largest hedge fund managers with $9bn (€7bn) under management, has broadened its focus from fixed income and currency markets to include equities.

The move follows last year's investment returns of 6.8%, below the 8% net returns generated by the industry. Long/short equity hedge funds, which take positive and negative positions in specific stocks, posted strong returns in the first four months this year as they took advantage of the equity market rally, although these have fallen this month.