BH Macro (BHMG)

BH Macro (BHMG) is a listed fund which offers exposure to the flagship macro hedge fund managed by Brevan Howard, one of the most successful hedge fund firms globally, which currently runs approximately $35bn.

BHMG has delivered strong risk-adjusted NAV returns in absolute terms, but its attractions are enhanced thanks to its historic track record as a powerful diversifier. The best periods for BHMG returns tend to be those when equity markets are struggling and there is volatility. On the downside, BHMG’s monthly losses have been limited as a result of trade structuring, portfolio diversification, and a strong risk-management process (see Portfolio). This gives rise to the convex nature of returns: BHMG has only suffered three negative years in terms of NAV performance since the IPO in 2007, and in these years NAV has been down by a few percentage points, yet in its best years it has delivered upwards of 20%.

More recently, NAV returns have been in line with the expected range but relatively muted, especially in the context of a surging equity market. In this scenario, it is perhaps unsurprising that the discount to NAV has been persistent (see Discount). This does nothing to alter the fact that BHMG may potentially act as a low-volatility compounder to form the core of a long-term investment portfolio. Perhaps of increasing relevance to today’s investor, it may act as a diversifier within equity and bond portfolios, given that the returns of Brevan Howard Master Fund Limited can potentially be very different, and hopefully complementary, to equity and bond returns.

Indeed, amongst other ‘risk-off’ trusts, there are signs that market participants are starting to value trusts which offer defensive or less highly correlated exposures. For example, Ruffer Investment Company (RICA) has seen its discount narrow since February 2026, and for a period recently traded at a premium to NAV, which compares to the experience of most of the period 2023 to 2025, when it traded at around a 5% discount. As we discuss in the Performance section, BHMG has performed well when compared to RICA and other lower volatility/defensive peers, yet trades on a wider discount. Increased firepower (see Discount) for buybacks and the launch of a new private fund by Brevan Howard which may invest in BHMG’s shares (as well as other funds run by Brevan Howard), may may contribute to the discount narrowing and/or provide a boost to BHMG’S NAV.