BH Macro posts marginal improvements on return amid ongoing challenges

BH Macro Ltd on Wednesday said the first half of 2026 was challenging for the closed-ended fund sector, with consolidation in the UK wealth management industry putting pressure on some shareholders and increasing the concentration of shareholdings in closed-ended funds.

The Guernsey-based closed-ended investment company reported a net asset value per share as at June 30 of £4.51, up 2.3% from £4.41 at December 31. The USD class NAV per share increased to USD4.62 from USD4.52.

Total NAV return for the six months to June 30 was 2.4% for the sterling class, compared with 1.38% a year ago. For the USD class, total NAV return was 2.2%, up from 0.83% a year ago.

BH Macro shares were up 0.2% at 413.00 pence per share on Wednesday morning in London. The shares have risen 5.4% over the past 12 months.

Chair Richard Horlick said the company had continued to focus on discount management against the challenging backdrop, highlighting its "significant buyback programme".

BH Macro spent £116 million buying back sterling class shares in 2024 and a further £115 million in 2025. The annual buyback allowance was increased to 14.99% from 5% for 2026.

The company has sought to attract new purchasers in the UK and internationally, while the new private fund established by Manager Brevan Howard Capital Management has the ability to trade in BH Macro shares through on-market purchases and sales. Deutsche Numis was appointed joint broker to assist with shareholder relations, discount management and the search for new investors.

As at June 30, the discount to NAV per share was 5.3% for the sterling class, compared with an average of 8.1% in 2025. The discount for the USD class was 5.4%, compared with an average of 8.4%. Horlick said the improving trend was a "culmination of a number of actions taken over time".

The company said the manager remained focused on investment performance and risk management. Underlying portfolio performance contributed 2.1% to NAV performance for both share classes in the first half, while discount management contributed 0.3% for the sterling class and 0.2% for the USD class.

Looking ahead, the company said: "With the AI revolution changing the demand for capital, geopolitics changing the inflation distribution and the federal reserve withdrawing some of the guidance on which markets have come to depend, the second half of 2026 potentially offers a richer but less forgiving macro opportunity set: more dispersion, more discontinuity, and less policy shelter."

Horlick said: "Nevertheless, we believe the company is an attractive long-term investment for those wishing to accumulate capital in a manner that has historically exhibited low structural correlation to equity or bond markets."

He added: "You are all aware of the high level of geopolitical risk and the high level of valuation currently placed on the US market. Against this backdrop, the board remains confident in the investment strategy of Brevan Howard Master Fund Ltd and the manager's ability to implement it successfully. My own conviction is reflected in the fact that the company's shares comprise the majority of my pension portfolio."

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