Brevan Howard’s Bold Bet: Closing Fund to Lock in Capital

Brevan Howard Asset Management, the Jersey-based hedge fund giant managing $34 billion, is making waves with a strategic shake-up. Bloomberg reported yesterday that the firm is closing its Global Volatility Fund led by star trader Ville Helske.

This isn’t just a fund closure. It is a calculated move to disrupt the status quo, prioritizing long-term capital stability over short-term flexibility.

The Global Volatility Fund, managing $379 million, is returning capital to investors due to its lack of scale and frequent redemption windows, sources close to the matter reveal. Helske, a heavyweight in Abu Dhabi overseeing billions across Brevan Howard’s BH Master Fund and BH Alpha Strategies, will now channel his expertise into these larger, more stable vehicles.

A Strategic Pivot for Resilience

This shift aligns with Brevan Howard’s broader vision: locking in capital for extended periods to build a fortress-like asset base, a trend echoing across titans like Millennium Management and Citadel.

Why the pivot? It’s all about resilience. The firm is extending redemption timelines. Today, 70% of BH Alpha Strategies’ $11.4 billion is now in share classes requiring two or more years to redeem. This means that Brevan Howard needs to insulate itself from the whims of jittery investors.

This isn’t just about weathering underperformance; it’s about securing predictable fees, investing in top talent, and staying ahead in the fiercely competitive hedge fund arena. But disruption comes with trade-offs. The shift has sparked hundreds of millions in redemptions as some investors balk at longer lockups, a challenge Brevan Howard is navigating as it reshapes its capital structure.

The Global Volatility Fund, up 15.5% through June 2025, was a bold bet on long volatility options in rates, currencies, and equities. Yet, its closure signals Brevan Howard’s willingness to cut loose what doesn’t scale to fuel its bigger vision.

Helske, a Helsinki School of Economics alum with a storied career from Ilmarinen to Brevan Howard, remains a linchpin in this transformation. His pivot to managing core funds underscores the firm’s trust in its star traders to drive long-term value.

This isn’t Brevan Howard’s first rodeo. Last year, it shuttered funds run by Alfredo Saitta and Louis Basger, doubling down on its core strengths.

At DisruptionBanking, we see Brevan Howard’s move as a signal to the industry: adaptability is king. By prioritizing capital duration over short-term wins, the firm is rewriting the hedge fund playbook, betting on stability to fuel innovation and growth. In a world where volatility is the only constant, Brevan Howard is positioning itself not just to survive but to dominate.

Author: Andy Samu

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