Brevan Howard has shuttered the Brevan Howard Global Volatility Fund, managed by high-profile trader Ville Helske, as part of a broader strategic pivot toward locking in investor capital for longer durations, according to a report by Bloomberg.
The $379m fund, which invested in long volatility options across rates, currencies, and equity indices, is returning capital to investors, according to sources familiar with the matter. Despite delivering a 15.5% return through June this year, the fund was deemed sub-scale and allowed relatively frequent investor redemptions – out of step with Brevan Howard’s evolving liquidity framework.
Helske, based in Abu Dhabi, will continue overseeing multi-billion-dollar allocations across Brevan Howard’s flagship hedge funds, including the BH Master Fund and BH Alpha Strategies. The closure marks another step in the firm’s campaign to restructure its capital base and extend lock-up periods, following a growing trend among top-tier managers like Millennium Management and Citadel.
Brevan Howard’s flagship Alpha Strategies platform, which manages $11.4 billion, has already seen a dramatic transformation in liquidity terms. Approximately 70% of its capital now sits in share classes requiring at least two years for full redemption – a significant change from three years ago when all redemptions operated on a three-month notice basis.
Brevan Howard, headquartered in Jersey and managing approximately $34bn in assets, declined to comment on the decision.
