Shares in BH Macro Limited (BHMG) closed sharply higher in trading late on Monday following an announcement from its investment manager, Brevan Howard, regarding a new private fund launch, according to a report by Quoted Data.
The sterling shares gained nearly 2% in late trading, finishing at 414p, after Brevan Howard disclosed plans for a new vehicle authorised to “invest and trade in the strategies and funds managed by the manager.” This explicitly includes BH Macro, whose sterling shares currently trade at a discount of approximately 10% to net asset value (NAV).
In a statement, BH Macro confirmed the new fund is “expected to invest in, amongst other things, both the company and Brevan Howard Master Fund Limited,” the Cayman-domiciled master fund in which BH Macro invests substantially all of its assets. The new fund will have the ability to trade both currency classes of BH Macro shares through on-market transactions.
The company noted a technical nuance: purchases of BH Macro shares by the new fund would be “funded by redemptions of its direct investments in the Master Fund,” with sales proceeds reinvested into the Master Fund or other Brevan Howard strategies.
The news follows recent corporate actions aimed at addressing the share price discount. Last week, BH Macro announced it had secured approval to increase its share buyback capacity to 14.99% of issued capital, up from 5%.
This discount has previously triggered shareholder votes on winding up the fund. While a similar vote was overwhelmingly defeated a year ago with 98% support, the persistent discount has remained a key focus for the board.
Separately, BH Macro published its December monthly report, confirming a NAV of £4.41 per sterling share and $4.52 per dollar share as of 31 December. These figures match the initial estimates published on 6 January.
According to a previous announcement on 8 January, this consistency should trigger class closure resolutions for both share classes—a mechanism designed to address structural discounts. The company has not yet issued a specific announcement confirming the activation of this process.
BH Macro provides investors with exposure to Brevan Howard’s global macro trading strategies, focusing on currencies, bonds, and derivatives. The fund is designed to deliver steady returns uncorrelated to traditional equity and bond markets and has historically demonstrated resilience during market downturns.
The current discount, however, has hampered shareholder returns. While the fund’s sterling share NAV rose 1.5% last year, the share price fell from 406p to 399p. Winterflood data highlights a more pronounced three-year effect: a total underlying investment return of 6% has been overshadowed by a share price decline of 9%.
