BH Macro reports mixed performance and shareholder decisions

Published 14/05/2025, 14:30
BH Macro reports mixed performance and shareholder decisions

LONDON - BH Macro (BCBA:BMAm) Limited (LSE:BHMG), an investment entity that channels funds into the Brevan Howard Master Fund, has reported a year of mixed financial results and shareholder activity, according to a recent analysis by Kepler Trust Intelligence. The fund’s GBP Net Asset Value (NAV) per share increased by 5.86% in 2024, with the US Dollar Class shares seeing a smaller rise of 4.92%. This performance discrepancy is largely attributed to the impact of GBP share class buybacks.

Share price performance outstripped NAV growth, with Sterling Class shares and US Dollar Class shares witnessing gains of 10.63% and 10.61%, respectively. This surge in share price has led to a narrowing discount to NAV, which fell from 10.7% at the beginning of 2024 to 6.7% by year’s end for the GBP share class. The narrowing is partly due to the Board’s aggressive buyback program, wherein approximately £116 million was spent on share repurchases throughout the year.

Despite these buybacks, the board has expressed dissatisfaction with the persistent modest discount above 5% and is concerned about the volatility that such discounts introduce. In terms of expenses, ongoing charges for investors increased from 2.16% in 2023 to 2.95% in 2024, with performance fees accounting for 0.74% of the increase.

In a recent shareholder vote on Class Closure Resolutions, a decisive majority voted against closing the classes, with 98.22% of GBP share voters and 99.86% of USD share voters opting to maintain the status quo. This reflects a strong investor belief in the fund’s strategy and management.

However, the start of 2025 has been less favorable for BH Macro. As of May 9, the GBP NAV has decreased by 2.45%, and the discount on GBP shares widened to 7.1% as of May 13, contrasting with the five-year average premium to NAV of 0.4%.

Kepler Trust Intelligence highlights the role of FX trading as a significant contributor to the fund’s returns over the past year, with notable increases in monthly NAV returns in the latter half of 2024. Digital assets and the board’s buyback activities are also recognized as contributing factors to the fund’s performance.

This analysis is based on a press release statement and aims to provide an objective overview of BH Macro’s financial performance and shareholder decisions without endorsing any claims. The information presented does not constitute investment advice and is intended for informational purposes only.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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