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BH Macro Ltd on Tuesday called 2025 ‘a challenging year’ as it reported a reduced return on net asset value. The Guernsey-based closed-ended investment company invests in a master fund managed by Brevan Howard Capital Management LP. According to BH Macro, its manager focuses on ‘long-term appreciation through active leveraged trading and investment on a global basis’, which has meant ‘diversification from, and low correlation to, bond and equity markets’. BH Macro’s NAV per share stood at £4.41 as of December 31, up from £4.35 on-year. The US dollar share class stood at $4.52, up from $4.48. NAV total return for 2025, however, slowed to 1.4% from 5.9% in 2024. The company declared no dividends, unchanged from the year prior. BH Macro shares rose 1.0% to 422.00 pence on Tuesday morning in London, having risen 12% over the past year. The company noted that its share price return in 2025 was negative 1.7% for the sterling class, and positive 1.7% for the dollar class, a performance it described as ‘less than satisfactory’, as its trading discount remains ‘undesirable’. Buybacks over the course of the year were insufficient to address the discount, which BH Macro attributed to ‘a well-publicised overhang of stock which has consistently been sold in the market’ and weaker NAV performance compared with other asset classes. BH Macro added: ‘The environment for wealth managers in the UK, the predominant shareholders of the company, has been extremely difficult in the current economic and political climate. Last year also unfortunately saw a lack of returns from the two historically principal drivers of return, interest rate trading and FX trading, and the board is encouraged by the changes to process which the manager has implemented during the course of the year.’ The company noted that it had agreed an increased buyback allowance with the manager. Up to 14.99% of BH Macro’s shares can be repurchased in 2026 without fees, compared to 5% in 2025. BH Macro also drew attention to the launch of a new private fund, announced in January, which will trade in strategies and funds managed by Brevan Howard Capital Management, including BH Macro. ‘This will mean that there is potentially an additional purchaser of the company’s shares. The board is confident that these actions may potentially help to address the issues facing shareholders,’ BH Macro added. Looking ahead, the company sees persistent volatility, with the US ‘domestic policy shelf relatively bare’ despite affordability being touted as a key issue for mid-term elections. BH Macro does not expect significant fiscal stimulus or housing reform in the US, while central banks elsewhere are either ‘on hold or recalibrating’. Chair Richard Horlick commented: ‘Global uncertainty continues to weigh on markets, especially owing to an evolving and increasingly complex conflict in the Middle East. President Trump continues to act unconventionally both domestically and on the international stage... With respect to the UK, I expressed scepticism last year with regard to the financial stability promised by the incumbent administration. Sadly, recent developments appear to align with my previous reservations. In these circumstances, the board retains full confidence that the manager‘s strategy provides the opportunity to deliver returns.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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