BH
Macro (BHMG)
02/10/2024
Results analysis from Kepler Trust
Intelligence
The NAV per share performance
in the six-month period to 30/06/2024 has been slightly negative,
being -1.10% for the Sterling share class and -1.54% for the US
Dollar share class. As at the time of writing, the most recent NAV
reflects a significant improvement from this position, with the NAV
per share for the Sterling share class now up 3.9% over the
calendar year to 27/09/2024, whilst the NAV per share for the US
Dollar share class was up 3.2% over the same
period.
In the interims, the manager
of BH Macro Limited ("BH Macro") provides macro commentary covering
the first half of the year. Rates were the main detractor during
the first quarter, whilst digital assets and discount management
(buybacks) were the main contributor. In Q2, rates and FX were both
positive, to some extent offset by digital assets and
equity.
Over the six months to
30/06/2024, assisted by BH Macro's share buyback programme that was
initiated in December 2023, the discount narrowed from 10.71% (as
at 31/12/2023) to 8.62% (as at 30/06/2024) for the Sterling share
class, and similarly from 11.71% (as at 31/12/2023) to 9.29% (as at
30/06/2024) for the US Dollar share class. Since 30 June 2024, BH
Macro has bought back a further 3.9m GBP shares, equating to 1.1%
of the shares in issue. No USD shares have been bought
back.
In BH Macro's Chairman's
statement, chairman Richard Horlick notes: "The entire closed-ended
fund sector is subject to greater pressure than at any other time
in my more than 40 years' experience of it", noting that, "The
Board remains convinced of the value of the Company and its
strategy and the quality of the Manager and looks forward to
delivering the highly diversifying positive returns, which the
Company has delivered time and again over the past 17
years".
Kepler
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The Chairman notes the
"highly diversifying" returns that BH Macro has delivered
historically. In an equity market that has so far this year largely
seen 'more of the same' positive momentum, it is perhaps not
surprising that BH Macro's performance - which has traditionally
been uncorrelated to equities - has not been noteworthy. That said,
the market panic that global markets experienced during the first
week of August gave us a helpful reminder of the diversifying
potential that is underneath BH Macro's bonnet.
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