Breaking Down BH Macro Limited Financial Health: Key Insights for Investors

Dive into BH Macro Limited's story-established in 2007 and admitted to the London Stock Exchange on 14 March 2007, this Guernsey-incorporated, FTSE 250 constituent operates as a closed‑ended feeder fund investing substantially all assets in Brevan Howard Master Fund Limited and reported net assets of approximately £1.481 billion as of December 2025; governance and liquidity actions in 2025 included suspending and then resuming share conversions in February, a completed conversion on 30 September 2025 affecting 123,408 Sterling Shares and 162,257 US Dollar Shares, and aggressive capital management with buybacks totaling 4,447,643 Sterling Class shares between January and March, outcomes that helped narrow the discount to NAV to 7.35% (Sterling) and 7.71% (USD) from over 11% in 2024 even as NAV per share ticked down 0.28% (GBP class) and 0.59% (USD class) in early 2025; read on to see how its global fixed income and FX-focused, leveraged macro strategies, fee structure, and alignment with Brevan Howard translate those data points into income and shareholder value.

BH Macro Limited (BHMG.L): Intro

• Inception: Established 2007; admitted to the Main Market of the London Stock Exchange on 14 March 2007.
• Tickers: BHMU (US dollar shares) and BHMG (Sterling shares).
• Domicile & structure: Guernsey closed-ended investment company; feeder fund that holds substantially all assets in Brevan Howard Master Fund Limited.
• Index membership: Constituent of the FTSE 250 Index.
• Net assets (Dec 2025): Approximately £1.481 billion.
• Corporate action: In 2016 BH Macro offered a share buyback and wind-up proposal as part of strategic options to enhance shareholder value.

• Objective: Provide shareholders with long-term capital appreciation primarily through exposure to global macro fixed income and FX strategies implemented by Brevan Howard via the Master Fund.
• Risk/return orientation: Diversified macro strategy seeking absolute returns with the intention of low correlation to traditional equity markets.

• Feeder structure: BH Macro itself does not run trading strategies; it holds shares in Brevan Howard Master Fund Limited, giving shareholders indirect exposure to the master fund's positions and returns.
• Board and oversight: A Guernsey-resident board oversees the company, appoints the investment manager and administrator, and monitors governance, liquidity and capital allocation decisions.
• Shareholder composition: Publicly traded shareholders in UK and international markets hold BHMG/BHMU shares; institutional holders commonly include asset managers, pension funds and hedge funds (constituency typical of FTSE 250 closed‑ended funds).

• Capital flow: BH Macro raises capital via its listed shares; cash is invested substantially all into ordinary shares of Brevan Howard Master Fund Limited (the Master Fund).
• Return transmission: Performance generated by the Master Fund (from macro trading in rates, FX, credit, etc.) is passed to BH Macro in the form of NAV movements of the Master Fund shares, which then move BH Macro's NAV and quoted share price.
• Fees and expenses: BH Macro bears its own operating costs (administration, custody, listing, board) and the Master Fund applies its management and performance fee schedule, which is the principal drag on gross returns to BH Macro shareholders.

• Primary source: Investment performance of Brevan Howard Master Fund Limited-positive performance increases BH Macro's NAV and shareholder value.
• Secondary sources / mechanics: Share buybacks, dividends (if declared), and capital allocation decisions by the board can alter per‑share value; corporate actions (e.g., the 2016 buyback/wind-up proposal) are used episodically to crystallise or return value.
• Costs that reduce returns: Operating expenses of BH Macro and fees charged within the Master Fund (management and performance fees) reduce net returns to BH Macro shareholders.

• For a deeper investor-oriented profile and discussion of who's buying and why, see: Exploring BH Macro Limited Investor Profile: Who's Buying and Why?

BH Macro Limited (BHMG.L): History

• Feeder structure: invests substantially all assets in Brevan Howard Master Fund Limited (the master fund).
• Incorporation and listing: Guernsey-incorporated; primary listing on the LSE.
• Share classes: US dollar-denominated (BHMU) and Sterling-denominated (BHMG) with distinct NAVs and market trading characteristics.

• Balance sheet profile: maintains a strong balance sheet with no borrowing and assets fully equity-backed.
• Capital allocation: active share buyback program in 2025 demonstrating focus on shareholder returns and discount management.

BH Macro Limited (BHMG.L): Ownership Structure

• Manager and regulator: Brevan Howard Capital Management LP (investment manager); Jersey Financial Services Commission (regulator).
• Feeder/master relationship: BH Macro acts as a feeder into Brevan Howard Master Fund Limited - the Master Fund executes the primary global macro and relative value trades.
• Investor base: mix of institutional and retail investors listed on the London Stock Exchange (ticker: BHMG.L).
• Governance: independent board in Jersey overseeing the feeder's compliance, reporting and alignment with shareholder interests.

• Objective: generate consistent long-term capital appreciation via active leveraged trading across global fixed income and FX markets.
• Strategy mix: combines global macro directional positions with relative value trades to capture dislocations across rates and currency markets.
• Diversification & risk management: the feeder structure channels capital into a diversified master portfolio designed to absorb market shocks through position limits, stress testing and dynamic hedging.
• Transparency & reporting: BH Macro Limited publishes regular shareholder reports and NAV statements to keep investors informed of performance, exposures and fees.

• Investors buy BHMG.L shares; capital is allocated to Brevan Howard Master Fund Limited, which executes macro and relative value trades.
• Returns flow from realized and unrealized P&L at the Master Fund level; after manager fees and fund expenses, net returns are reflected in the feeder's NAV.
• Leverage is used at the Master Fund level to amplify macro convictions, subject to risk limits set by the manager and overseen by the feeder's board.

BH Macro Limited (BHMG.L): Mission and Values

• Capital preservation through active risk management
• Transparency of position and corporate actions to shareholders
• Alignment of interests with external manager and capital providers
• Liquidity and shareholder-return focus via buybacks and share conversion mechanisms

• Structure: Closed-ended investment company listed on LSE (BHMU - USD, BHMG - GBP)
• Primary exposure: Ordinary shares of Brevan Howard Master Fund Limited (the "Master Fund")
• Investment approach delivered to shareholders: Global macro and relative value trading strategies implemented by the Master Fund

• Economic exposure: Shareholders capture the underlying returns of the Master Fund's global macro and relative value strategies through BH Macro's holding of Master Fund ordinary shares.
• NAV appreciation (or depreciation): Movements in the Master Fund's net asset value flow through to BH Macro's NAV per share in the relevant currency class.
• Dividend/Distribution policy: Distributions to shareholders depend on the Board's decisions, available distributable reserves and the Master Fund's performance (timing and quantum vary).
• Capital return mechanisms: The company conducts share buybacks (e.g., 4,447,643 Sterling shares repurchased Jan-Mar 2025) and periodic share conversions to manage share capital and enhance per-share value.

• Manager relationship: The Master Fund is managed by Brevan Howard Capital Management LP, which implements the trading strategies and bears direct responsibility for portfolio management.
• Corporate oversight: BH Macro's Board oversees capital management, buybacks, conversions and corporate governance, but investment performance is driven by the Master Fund's trading results.
• Reporting: BH Macro reports NAVs and corporate actions for each share class separately, reflecting currency-denominated performance and fees at the Master Fund level.

• Currency exposure: Holding BHMU vs BHMG creates direct USD vs GBP denomination exposure affecting market price volatility and NAV translation.
• Liquidity and market pricing: Secondary market spreads and liquidity differ between the two tickers; buybacks and conversions are tools used to reduce discount/premium volatility.
• Concentration: Economic exposure is concentrated in a single underlying manager/fund; performance is therefore highly correlated with the Master Fund's returns and risk profile.

BH Macro Limited (BHMG.L): How It Works

• Primary exposure: a subscription of capital into Brevan Howard Master Fund Limited, which executes active, leveraged trading strategies across global fixed income and foreign exchange markets.
• Investment instruments used by the Master Fund: debt securities, bank loans, public equities, currencies, commodities and a broad spectrum of derivatives (futures, swaps, options, repos).
• Leverage: the Master Fund routinely uses leverage (repo, swaps and derivatives) to magnify directional and relative‑value macro positions; gross exposures often exceed net exposure by multiples (typical historical gross exposure ranges: several times NAV, depending on market conditions).

• Investment returns: BH Macro's income and NAV movement are driven by the Master Fund's realized and unrealized gains and losses on its portfolio.
• Dividend distribution: BH Macro can distribute cash to shareholders via dividends sourced from realized gains and income generated by the Master Fund (dividend policy has historically been opportunistic and driven by liquidity and performance).
• Share buybacks: BH Macro has used repurchases to enhance shareholder value by reducing share count and supporting NAV per share when shares trade at a discount to NAV.
• Cost structure: BH Macro pays management/administration expenses and bears a share of the underlying Master Fund's fees and costs; these reduce available distributable cash and NAV growth.

• Capital appreciation: NAV per share rises with positive performance of the Master Fund; shareholders benefit when market price approaches NAV.
• Dividends: periodic distributions can be paid from realized income; yield varies with performance and board decisions.
• Buybacks: authorised repurchase programmes can increase earnings/NAV per share for remaining shareholders if executed when shares trade at a discount.

• Exposure mix: multi‑asset (rates and FX historically largest contributors), with ability to hold debt, Equity, FX and commodity positions via swaps, futures and cash instruments.
• Fee layering: investors in BH Macro bear both the Master Fund's fees (management + performance) and company‑level costs - a two‑tiered fee impact on gross fund returns.
• Performance sensitivity: company returns are highly cyclical and correlated to macro volatility and interest‑rate regimes; strong years can produce double‑digit returns, while weak years can generate losses.

• Liquidity and gating: BH Macro's shares trade on the exchange (LSE: BHMG.L) and provide daily liquidity for shareholders; underlying Master Fund liquidity terms and margin calls can affect BH Macro's realized cash flows.
• Currency: NAV is affected by USD‑GBP translation if the Master Fund reports in USD while the company reports in GBP/other currencies.
• Market condition dependence: interest rates, volatility, and global macro events materially affect the Master Fund's strategy effectiveness and thus BH Macro's income generation.

BH Macro Limited (BHMG.L): How It Makes Money

• Primary revenue sources: performance-related gains from underlying manager allocations and, to a lesser extent, interest and other investment income.
• Cost items: management fees payable to underlying managers, operating expenses, and financing costs when leverage is employed.
• Value-enhancement tools: active portfolio reweighting, manager selection, and share buybacks to support NAV/share and narrow discount to NAV.

• Investor communications: periodic shareholder reports and NAV updates that disclose exposures, performance attribution and corporate actions.
• Investment objective: deliver absolute returns with capital preservation emphasis through diversified macro/multi-strategy allocations.