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

BH MacroAnnouncement

14/05/2025 14:30

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250514:nRSN6901Ia&default-theme=true

RNS Number : 6901I  BH Macro Limited  14 May 2025

BH Macro (BHMG)

14/05/2025

Results analysis from Kepler Trust Intelligence

BH Macro invests in the Brevan Howard Master Fund Limited (the Master Fund)
whose investment objective is to generate consistent long-term appreciation
through active leveraged trading and investment on a global basis. During
2024, BH Macro's GBP NAV per share rose by 5.86%, and by 4.92% for the US
Dollar Class shares. The difference between the two being largely the
contribution from GBP share class buybacks.

The share price performance was higher for both share classes at 10.63% for
the Sterling Class shares and 10.61% for the US Dollar Class shares, with the
discount to NAV narrowing.  The board continued with a substantial buyback
programme throughout the year, spending some £116m.  The Board is very
conscious that a modest discount above 5% remains unsatisfactory over a
long-term horizon, and that the additional volatility created by moving from
premia to discounts for the share price undermines one of the key virtues of
being invested in the Master Fund.

Ongoing charges increased over the year from 2.16% in 2023 to 2.95% in 2024, a
result of 0.74% of performance fees being paid in 2024.

Those shareholders of each of the Company's two share classes who voted in the
Class Closure Resolutions vote did so decisively against class closure, with
98.22% of those who voted voting against for GBP shares and 99.86% for USD
shares (percentage calculations are based on voter turnout not total share
class size).

Kepler View

It is encouraging to see BH Macro's discount to NAV narrowing during the
period, from 10.7% at 01/01/2024 to 6.7% at 31/12/2024 for the GBP share
class, as a result of the Board's continued buyback programme and steady
performance. The latter half of the year saw a notable uptick in performance,
with GBP monthly NAV returns of 5.1% and 7.0% in September and November 2024
respectively, largely driven by rates and FX trading.  Overall, FX trading
has been a strong contributor to BH Macro's returns over the year. Digital
Assets and share buybacks have also contributed, showing the benefits of
diversification but also of the board's activities.

So far this year, BH Macro has had a slightly harder time of it, with the GBP
NAV -2.45% as at 09/05/2025. The GBP shares' discount is 7.1% (as at
13/05/2025). This compares to the average for the five years (to 13/05/2025)
of a premium to NAV of 0.4%. Strong performance in absolute or relative terms
from the Master Fund would provide catalyst for the discount to narrow. Since
the period end, a resounding majority of voting shareholders in each of the
Company's two share classes voted against class closure resolutions. This
demonstrates ongoing investor conviction in BH Macro's continued unique
proposition of offering access to a diversifying macro hedge fund strategy.

CLICK HERE TO READ THE FULL REPORT
(https://www.trustintelligence.co.uk/investor/articles/news-investor-results-analysis-bh-macro-retail-may-2025?utm_source=RNS&utm_medium=news)

Visit Kepler Trust Intelligence
(http://www.trustintelligence.co.uk/investor?utm_source=RNS&utm_medium=news)
for more high quality independent investment trust research.

 

Important information

This report has been issued by Kepler Partners LLP.  The analyst who has
prepared this report is aware that Kepler Partners LLP has a relationship with
the company covered in this report and/or a conflict of interest which may
impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of
investments can fall as well as rise and you may get back less than you
invested when you decide to sell your investments. It is strongly recommended
that if you are a private investor independent financial advice should be
taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients.
This report has been issued by Kepler Partners LLP, is based on factual
information only, is solely for information purposes only and any views
contained in it must not be construed as investment or tax advice or a
recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to,
or use by, any person or entity in any jurisdiction or country where such
distribution or use would be contrary to law or regulation or which would
subject Kepler Partners LLP to any registration requirement within such
jurisdiction or country. In particular, this website is exclusively for non-US
Persons. Persons who access this information are required to inform themselves
and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and
should not be construed as, investment advice. No representation or warranty,
express or implied, is given by any person as to the accuracy or completeness
of the information and no responsibility or liability is accepted for the
accuracy or sufficiency of any of the information, for any errors, omissions
or misstatements, negligent or otherwise. Any views and opinions, whilst given
in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation,
offer or solicitation to buy or sell or take any action in relation to any
investment mentioned herein. Any prices or quotations contained herein are
indicative only.

Kepler Partners LLP (including its partners, employees and representatives) or
a connected person may have positions in or options on the securities detailed
in this report, and may buy, sell or offer to purchase or sell such securities
from time to time, but will at all times be subject to restrictions imposed by
the firm's internal rules. A copy of the firm's Conflict of Interest policy is
available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS
(http://www.trustintelligence.co.uk/investor/terms?utm_source=RNS&utm_medium=news)

Kepler Partners LLP is authorised and regulated by the Financial Conduct
Authority (FRN 480590), registered in England and Wales at 70 Conduit Street,
London W1S 2GF with registered number OC334771.

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRASFEFDLEISEFI