H2O Asset Management

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H2O Asset Management
Company type	Private
Industry	Asset management
Founded	2010
Founder	Bruno Crastes
Headquarters	London, United Kingdom
Key people	Bruno Crastes (CEO)
AUM	€22 billion (2024)
Website	www.h2o-am.com

H2O Asset Management is a London-based asset management firm specializing in global macro and fixed-income strategies. Founded in 2010 by Bruno Crastes, the firm manages approximately €22 billion in assets as of 2024.

Known for its high-conviction, high-risk investment approach, H2O has faced significant challenges due to its exposure to illiquid assets tied to financier Lars Windhorst and subsequent regulatory scrutiny.

History

H2O Asset Management was established in 2010 by Bruno Crastes, a former portfolio manager at Credit Agricole Asset Management. The firm quickly gained prominence for its global macro funds, such as H2O Multibonds and H2O Adagio, attracting institutional and retail investors. By 2019, H2O managed over €30 billion in assets.^[1]

In 2019, H2O faced a major scandal when the Financial Times revealed that up to €1.4 billion of its assets were invested in illiquid securities linked to Lars Windhorst’s businesses, including Tennor Holding.^[2] The exposure, which contrasted with the firm’s focus on liquid markets, raised concerns about liquidity risks and due diligence, triggering billions in investor withdrawals.^[1] The French Autorité des Marchés Financiers (AMF) intervened in 2020, forcing H2O to suspend subscriptions and redemptions in three French-domiciled funds to protect investors.^[3]^[4]

To manage the crisis, H2O segregated illiquid assets into side pockets. In 2020, the firm underwent a restructuring, with Natixis Investment Managers, a minority shareholder, selling its stake to H2O’s management in 2021.^[5] Regulatory scrutiny continued, with the AMF fining H2O and its executives €15 million in 2023 for breaches related to Tennor investments.^[6] By 2024, H2O had repaid €70 million to investors trapped in side-pocketed funds, with the UK’s Financial Conduct Authority mandating a total repayment of $273 million.^[7]^[8]

References

^ ^a ^b "H2O, Woodford and GAM crises highlight liquidity risk". Financial Times. Retrieved 2025-05-10.
^ "H2O Asset Management: illiquid love". Financial Times. Retrieved 2025-05-10.
^ "French regulator forces H2O to suspend funds". Citywire. Retrieved 2025-05-10.
^ "AMF confirms having requested the suspension of subscriptions and redemptions of units in three French-domiciled funds". AMF. Retrieved 2025-05-10.
^ "Natixis IM offloads H2O stake to management". Financial Times. Retrieved 2025-05-10.
^ "French watchdog fines H2O Asset Management, executives over Tennor investments". Reuters. Retrieved 2025-05-10.
^ "H2O to repay €70mn to investors with funds trapped in illiquid assets". Financial Times. Retrieved 2025-05-10.
^ "UK regulator says H2O fund to pay trapped investors $273 million". Reuters. Retrieved 2025-05-10.

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