Results analysis from Kepler Trust Intelligence

BH Macro Limited

31 March 2026

 

BH Macro (BHMG)

31/03/2026

Results analysis from Kepler Trust Intelligence

BH Macro Limited ("the Company", GBP share class ticker = "BHMG"), the FTSE 250-listed investment company that aims to generate long-term appreciation through active trading on a global macro basis by investing in the Brevan Howard Master Fund Limited (the "Master Fund"), is pleased to announce its final results for the year ended 31 December 2025.

•    Total NAV return per GBP ordinary share of 1.38%, and USD shares 0.83% (2024: 5.86% and 4.92%, respectively)

•    Share price total returns of -1.72% for the Sterling Class and 1.68% for the US Dollar Class

•    Despite £116m having been spent during 2025 under the buyback program, including US Dollar buybacks of US$1.3 million, this was not sufficient to prevent the average discount for the year being 8.10% for the Sterling Class shares and 8.36% for the US Dollar Class shares.

•    The board regards this performance as less than satisfactory as does Brevan Howard Capital Management LP (the "Manager") - whilst it is within expected bounds of return. The board have, therefore, together taken action to address two critical areas of concern.

•    Firstly, the board is encouraged by the changes to process which the Manager has implemented during the course of the year.

•    Secondly, in addressing the persistent level of discount, the board has negotiated, with the full support and encouragement of the manager, an increase in the 2026 allowance for Master Fund redemptions to enable buybacks to up to 14.99% of each class of the company's issued share capital (as at the end of 2025), without fees being incurred, up from 5% in 2025.

•    Finally, on 26 January 2026, it was announced that a private Brevan Howard fund was being launched which will have the power to invest in the shares of both the Master Fund and BH Macro, along with other products offered by Brevan Howard. Therefore, there will be an additional potential purchaser of the company's shares when or if they trade at a discount.

Outlook

The macro-economic and geopolitical background remains extremely challenging. While this is undoubtedly a very difficult environment for individuals to experience and live through, it will provide opportunities for the manager to deliver returns in the future. The board retains full confidence in the company's strategy during these challenging times

Commenting on the results, Richard Horlick, Chair, said: "BH Macro has historically provided significant diversification from, and lack of correlation to, bond and equity markets. In today's unpredictable global market environment, macro strategies such as BH Macro have never been more relevant. Whilst the board regards the company's performance for 2025 as less than satisfactory (as does the manager), NAV returns were within expected bounds of return and proved the convexity of trades for which Brevan Howard are well known (i.e. when "they get it wrong" the downside risk of the NAV is limited and on the other hand being able to capture plenty of upside when they are correct. As a board, we are confident that the actions we and the manager have taken are the best way to address the issues facing our shareholders, and as such, the board retains its confidence in the manager.

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