| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 130.80 | -68 |
| Intrinsic value (DCF) | 151.20 | -63 |
| Graham-Dodd Method | 4.60 | -99 |
| Graham Formula | 0.40 | -100 |
BH Macro Limited (LSE: BHMG.L) is a Guernsey-domiciled feeder fund managed by Brevan Howard Asset Management LLP, investing exclusively in the Brevan Howard Master Fund Limited. Launched in 2007, BH Macro provides investors with exposure to a diversified portfolio of global macro strategies, focusing on interest rates, currencies, and other macroeconomic trends. As part of the financial services sector, BH Macro operates in the competitive asset management industry, leveraging Brevan Howard's expertise in hedge fund management. The fund's structure allows for liquidity and transparency, appealing to institutional and sophisticated investors seeking alternative investments. With a market cap of approximately £1.42 billion, BH Macro is a significant player in the hedge fund space, offering a unique investment vehicle for those looking to capitalize on macroeconomic opportunities.
BH Macro Limited presents a specialized investment opportunity for those seeking exposure to global macro strategies through a managed feeder fund. The fund's negative beta (-0.24) suggests low correlation with broader markets, potentially offering diversification benefits. However, the absence of dividends and reliance on Brevan Howard's performance introduce risks, particularly in volatile macroeconomic environments. The fund's strong operating cash flow (£174.9 million) and zero debt position are positive indicators, but investors should weigh the fund's niche focus against broader market conditions and alternative investment options.
BH Macro Limited's competitive advantage lies in its exclusive focus on the Brevan Howard Master Fund, leveraging Brevan Howard's established reputation in global macro trading. This provides investors with access to a high-caliber, diversified strategy managed by experienced professionals. However, the fund's performance is inherently tied to Brevan Howard's success, creating dependency risks. Compared to broader asset managers, BH Macro's niche focus limits its appeal to a specific investor base. The fund's liquidity and transparency are strengths, but it faces competition from other hedge funds and alternative investment vehicles offering similar or broader strategies. The absence of dividends may also deter income-focused investors, positioning BH Macro primarily for capital appreciation seekers.