Brevan Howard Asset Management is winding down a volatility-focused hedge fund run by high-profile Finnish portfolio manager Ville Helske. Helske, formerly Head of Allocation at Finnish pension insurer Ilmarinen and leader of its internally-managed Alpha unit, will remain with Brevan Howard and continue to manage allocations for several of Brevan Howard’s flagship hedge funds, including the BH Master Fund and the multi-strategy BH Alpha Strategies.
The Brevan Howard Global Volatility Fund, which manages around $379 million, is returning capital to investors, according to Bloomberg. The fund struggled to reach sufficient scale and offered relatively frequent redemption terms. Its closure is part of Brevan Howard’s broader effort to secure longer-term capital commitments, a shift echoed by peers such as Millennium Management and Citadel. Locking in capital for longer is seen as essential for maintaining stability during periods of underperformance, reducing the risk of sudden investor withdrawals. It also enables hedge fund firms to generate more predictable fee income, reinvest in their operations, and attract top trading talent to stay competitive.
Roughly 70 percent of the $11.4 billion in Brevan Howard’s Alpha Strategies is now held in share classes with redemption periods of two years or more – a stark contrast to just three-and-a-half years ago, when all capital was redeemable with only three months’ notice. According to Bloomberg News, the shift has prompted hundreds of millions of dollars in redemptions, as not all investors are willing or permitted to commit their capital for extended periods.
Based in Abu Dhabi, Ville Helske will continue to manage and oversee billions of dollars across several Brevan Howard hedge funds, including the firm’s flagship BH Master Fund and the multi-strategy BH Alpha Strategies, according to Bloomberg. Prior to joining Brevan Howard as a senior trader in Geneva in January 2013, Helske spent nearly a decade at Finnish pension insurer Ilmarinen, where he held roles including Head of Allocation and Head of Ilmarinen Alpha. He led the development of the Ilmarinen’s internal hedge fund unit, steering away from external hedge fund managers due to concerns over liquidity, transparency, and fees.
The Brevan Howard Global Volatility Fund employed volatility strategies across interest rates, currencies, and equity index markets. Managed by Ville Helske since its launch in 2018, the fund had gained 15.5 percent year-to-date through June, according to Bloomberg. It formed part of Brevan Howard’s broader initiative to give top-performing traders dedicated capital pools and raise external assets around them. Last year, the firm closed two other such trader-led funds, managed by Alfredo Saitta and Louis Basger. While Saitta has since left the firm, Basger continues to manage allocations within Brevan Howard’s broader hedge fund platform.
