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Fund Profile


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by BH Macro. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

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BH Macro Limited (BHMG) is a listed investment company feeder into Brevan Howard’s flagship fund, Brevan Howard Master Fund Limited (Master Fund). The Master Fund is one of the most successful hedge funds of all time, in terms of the absolute amount of money returned to investors since the firm’s launch in 2002. BHMG was launched on the London Stock Exchange in 2007 and, since then, has achieved strong absolute returns with relatively low volatility (see Performance section). As a result, BHMG represents a high-quality investment proposition, having a manager with a pedigree of over 20 years and a track record as a listed fund of over 16 years, with an independent board.

The Master Fund aims to provide compelling, asymmetric returns for investors, irrespective of market conditions. The Master Fund has exposure to a complementary combination of macro-directional and macro-relative value strategies, all overseen by a highly-resourced risk management team. The strongest periods of NAV performance have come at times of stress for equities, such as in Q1 2020, and in bond markets, over 2022, for example. As well as providing strong diversification to a portfolio, BHMG’s NAV has beaten world equities over the last five years, with considerably less volatility and significantly lower drawdowns.

Performance in 2023 has been more challenging, a result of a significant reversal in fortunes during March 2023 which saw a NAV decline of 4.29% over the month. As we discuss in the Portfolio section, Brevan Howard’s investment committee have since made a number of subtle changes to how the portfolio is made up, with the aim of further reducing the potential for drawdowns and improving risk-adjusted returns.

Analyst's View

We believe that it is uncontroversial to say that BH Macro is a high-quality offering within the London-listed fund universe. In common with many other trusts (quality, or otherwise), the discount to NAV has widened during the past 12 months. In our view, this is a clear opportunity for long-term investors – especially given that, as we discuss in the Discount section, it was not long ago that BHMG’s shares traded at a premium to NAV north of 10%.

Taking a step back, BHMG has time and again proved its worth as a portfolio diversifier, as well as having generated strong absolute returns. It is important to remember that this is not an investing strategy that requires Brevan Howard to accurately forecast the future better than anyone else. Instead, their strong risk-adjusted returns depend on the traders’ ability to evaluate and create asymmetric trades, the investment committee to allocate capital and maximise diversification, and the risk team to minimise drawdowns.

March 2023 was a tough month, in what was an unprecedented move in interest rate expectations. Rather than a negative, we see the experience as burnishing the risk team’s credentials, in that the drawdown was minimised. With the global macro landscape looking so uncertain, we believe Brevan Howard remains in a strong position to continue to deliver attractive risk-adjusted returns from the Master Fund. With the discount to NAV at historically wide levels, long-term investors may see these returns enhanced if the discount narrows.


  • Highly differentiated investment proposition, with few easily accessible comparable peers
  • Diversifier to equities and bonds – strongest performance has, historically, come at periods of market stress
  • Larger size of company, following fundraising and share split, means better liquidity


  • Opaque underlying positioning
  • Can go through periods of relatively lacklustre returns
  • Higher fees than traditional funds and trusts
Continue to Portfolio

Fund History

10 Apr 2024 Results analysis: BH Macro
BH Macro rebounds in H2 of 2023…
14 Feb 2024 Fund Analysis
BHMG’s differentiated proposition is made yet more attractive given the 11% discount to NAV…
01 Feb 2024 Bring some yin-yang into your portfolio in 2024
Inherent contradictions within portfolios can give them stability in a polarised world...
01 Nov 2023 Back to basics
Higher rates mean re-visiting portfolio construction...
05 Oct 2023 Fund Analysis
BHMG’s proposition as a high-quality diversifier remains, yet it trades on a 11% discount to NAV…
18 Sep 2023 Results analysis: BH Macro
After a banner year in 2022, 2023 has proved more challenging for BHMG and a wide discount has emerged…
02 May 2023 Fund Analysis
BHMG’s premium has moderated, yet it continues to offer strong diversification…
06 Apr 2023 Results analysis: BH Macro
2022 was a banner year, but a negative month in March 2023 means BHMG’s premium has subsided…
30 Nov 2022 Cry havoc!
Lessons from a year in which an already troubled world was savaged by the dogs of war...
19 Oct 2022 Gimme shelter
Our analysts examine safe havens and defensive strategies as we endure the market's 19th Nervous Breakdown...
21 Sep 2022 Results analysis: BH Macro
BHMG had a strong first half to its current financial year…
16 Sep 2022 Fund Analysis
BHMG continues to prove its worth in portfolios...
22 Jun 2022 Spider's web
We outline our new quantitative system for mapping the crucial performance characteristics of investment trusts…
11 Apr 2022 Results analysis: BH Macro
After an eventful 2021 for BH Macro, 2022 has so far proven to be strong in performance terms…
26 Jan 2022 Fight or flight...
Two of our analysts debate the impact that war in Ukraine could have on investors' portfolios...
18 Jan 2022 Fund Analysis
BHMG’s hefty 8% premium reflects its unique qualities…
01 Sep 2021 Winter is coming
Summer was a welcome opportunity for exhausted investors to turn their backs on the legion threats they face, but they haven't gone away and the days grow short - we examine four in detail...
19 Nov 2020 Fund Analysis
BHGG continues to offer attractive diversification properties, particularly given elevated equity market valuations…
28 Oct 2020 Can the passives bull market continue forever?
We examine what the trend to passive investing means for active investment strategies…
19 Aug 2020 Has the time come for Europe?
With mutual eurozone debt established all eyes are on the continent once more; but what will drive relative returns?
01 Jul 2020 Oh the humanity...
We consider two strategies to cope with markets which, boosted by massive government support, may be witnessing the start of a ‘melt-up’ which may be followed swiftly by a melt-down...
18 Jun 2020 Challenge the status quo
We explain why diversification on its own is not a panacea for portfolio construction...
29 Apr 2020 On solid ground
Our analysis of discounts highlights trusts which are likely to offer significantly less discount downside from the current level…
28 Apr 2020 Fund Analysis
Strong NAV performance in March crash means discount looks anomalous...
08 Apr 2020 Children of the Revolution
The outperformance of technology hints at an exciting possible future for the market when the virus is beaten…
30 Jan 2020 Is it time to run away?
With a sense of complacency in the air, our analysts debate the best ways to shore up your portfolio's defenses...
16 Jan 2019 There may be trouble ahead
We analyse why multi-asset macro funds have struggled and attempt to identify some possible closed-ended alternatives...
16 Jan 2019 Fund Analysis
Seeks to generate strong risk adjusted returns in all market conditions
09 Jan 2019 Fund Analysis
A feeder trust for the Brevan Howard macro hedge fund, which has seen resurgent performance in 2018...
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