RCS - BH Macro Limited - Results analysis from Kepler Trust Intelligence

BH MacroAnnouncement

11/04/2022 10:15

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RNS Number : 9558H  BH Macro Limited  11 April 2022

BH Macro (BHMG)

11/04/2022

 

Results analysis from Kepler Trust Intelligence

·    In the financial year ending 31/12/2021, BH Macro (BHMG) combined
with BH Global to create a much larger entity with hopefully greater
liquidity, the primary rationale for the combination.

·    Brevan Howard Capital Management LP (BH Macro's manager) also asked
for a reversal of some of the fee concessions granted at the time of BH
Macro's previous tender offer. These proposed amendments were put to a
shareholder vote, where 82.5% of voting share rights voted in favour.

·    NAV performance was modest but consistent for 2021 with a total
return of 2.76% per share for the Sterling shares. Over the course of 2021 the
manager's core theme of persistent and rising inflation did play out and
deliver returns, but other, usually correlated themes such as rising long-end
rates and steepening yield curves did not.

·    BH Macro's chairman summarized his outlook thus: "2022 holds out the
prospect to be an extremely volatile year both at the geopolitical level and
at the economic level. It is possible that conditions will be remarkably
different from those that we have experienced for the last 40 years. I refer
particularly to the implications of resurgent inflation which despite previous
statements from government agencies and central banks that it was transitory
now appears to be embedded worldwide. This is an enormous sea change in the
background for financial markets. I hope that it will create the conditions in
which your Manager will flourish but we remain confident that the nature of
the convexity of the trades that they put on, and their acute attention to
risk, will ensure that if their trades are unsuccessful in this volatile
environment there will be limited downside for your investments."

Kepler View

BH Macro (BHMG) now has a market capitalisation of nearly £1.2bn (including
the GBP and USD share classes), and a more diversified share register than
before the combination with BH Global.  BH Macro is a feeder into the Brevan
Howard Master Fund. The Master Fund aims to generate capital growth through a
combination of global macro and relative value trading strategies.

BHMG has exhibited clear diversification from risk assets over its lifetime.
Its track record shows that it has delivered strong returns in those periods
which have proved most difficult for equity markets. 2020 was the strongest
calendar year of performance for the Master Fund since inception, which sets
the more modest performance in 2021 into context.

Investors' continued confidence in the trust is reflected in the premium to
NAV at which the shares have consistently traded since the merger with BH
Global. Performance over 2022 so far has been impressive, with BHMG's exposure
to rising interest rates a particular driver. For the calendar year to the end
of March 2022, the GBP share's NAV is + 8.36% with a NAV performance of +5.5%
in March alone.

CLICK HERE TO READ THE FULL REPORT
(https://www.trustintelligence.co.uk/investor/articles/news-investor-results-analysis-bh-macro-retail-apr-2022)

 

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