Brevan Howard hires former Morgan Stanley, Merrill executives

Brevan Howard Asset Management LLP, Europe’s largest hedge-fund manager, added three partners from Wall Street firms including Morgan Stanley and Merrill Lynch & Co. as pay and trading constraints drive traders to hedge funds.

Fabrizzio Gallo, 43, who oversaw proprietary trading at Morgan Stanley until April, joined the firm this month, along with Danny Bernheim, 39, who left Merrill Lynch in June, and Richard Chau, 41, according to filings from Companies House and the U.K.’s Financial Services Authority. The three follow Mark Hillery, formerly head of emerging- markets investments at Tudor Investment Corp., in joining Brevan Howard in the past month. The London-based firm manages about $24 billion and was one of the few hedge funds to post a profit in 2008 as hedge funds had their biggest losses in two decades.