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Stock Analysis & ValuationBH Global Limited (BHGU.L)

Professional Stock Screener
Previous Close
£19.90
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method40.10102
Graham Formula807.303957

Strategic Investment Analysis

Company Overview

BH Global Limited (BHGU.L) is a Guernsey-based closed-ended investment company listed on the London Stock Exchange. The company operates as a feeder fund, investing substantially all of its assets in the Brevan Howard Multi-Strategy Master Fund Limited (BHMS), which employs a diversified multi-strategy approach across debt securities, bank loans, equities, and other investment vehicles. Managed by Brevan Howard Capital Management LP, BH Global seeks to generate consistent long-term capital appreciation by leveraging BHMS's expertise in global macro and relative value strategies. As part of the financial services sector, BH Global provides investors exposure to alternative investment strategies typically reserved for institutional players. The fund's performance is closely tied to the macroeconomic insights and risk management capabilities of Brevan Howard, a well-known name in hedge fund management. With no debt and a focus on capital preservation, BH Global appeals to investors seeking diversified hedge fund exposure within a publicly traded structure.

Investment Summary

BH Global Limited offers investors access to Brevan Howard's multi-strategy hedge fund expertise through a publicly traded vehicle. The fund's strong FY 2020 performance, with net income of $118.9 million and diluted EPS of $5.28, reflects the underlying fund's ability to navigate volatile markets. However, the lack of dividends and reliance on a single master fund strategy may deter income-focused investors. The negative beta (-0.163) suggests low correlation with broader equity markets, potentially offering portfolio diversification benefits. Key risks include dependence on Brevan Howard's investment team, hedge fund fee structures, and the inherent volatility of alternative investment strategies. The fund's closed-ended structure provides stable capital but may trade at discounts or premiums to NAV.

Competitive Analysis

BH Global's competitive position is defined by its exclusive focus on Brevan Howard's multi-strategy master fund, which provides access to institutional-grade hedge fund strategies in a retail-friendly format. The company's primary advantage lies in its affiliation with Brevan Howard, a respected hedge fund manager with deep expertise in global macro trading. This relationship provides BH Global investors with strategies and market access that would typically require much higher minimum investments. However, the fund's single-manager dependence represents a concentration risk not present in multi-manager hedge fund vehicles. The closed-ended structure offers liquidity advantages over traditional hedge funds but may trade at persistent NAV discounts. BH Global competes with both other listed hedge fund vehicles and traditional asset managers offering alternative investment exposure. Its performance is largely tied to Brevan Howard's ability to generate alpha across market cycles, making manager retention and strategy evolution critical competitive factors. The fund's Guernsey domicile provides tax efficiency for certain investors but may limit appeal in jurisdictions favoring onshore structures.

Major Competitors

  • BMO Commercial Property Trust Limited (BME.L): BMO Commercial Property Trust offers property investment exposure rather than hedge fund strategies. While both are Guernsey-based closed-ended funds, BME focuses on UK commercial real estate, providing different risk/return characteristics. BME typically offers higher dividend yields but lacks BH Global's hedge fund strategy diversification.
  • LMS Capital plc (LMI.L): LMS Capital is a UK-based investment company focusing on private equity and real estate rather than hedge fund strategies. While both provide alternative investment exposure, LMS's direct investment approach differs from BH Global's fund-of-one structure. LMS offers more control over investments but requires different expertise from BH Global's manager selection approach.
  • Pacific Horizon Investment Trust plc (PHI.L): Pacific Horizon focuses on Asia-Pacific growth equities rather than multi-strategy hedge fund exposure. Both are closed-ended funds but appeal to different investor objectives - PHI for emerging market growth, BH Global for absolute return strategies. PHI typically has higher volatility and emerging market currency risk compared to BH Global's diversified approach.
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