BH Macro Ltd on Wednesday said net asset value per share was up significantly, as it pointed to high inflation and volatility proving favourable to its core macro strategies.
The Guernsey-based close-ended investment company said net asset value per share sterling shares were £41.81 at December 31, up 22% from £34.30 a year earlier. Most of its shares are priced in sterling.
Shares in BH Macro were down 0.4% to 416.50 pence each in London on Wednesday morning.
This was due to a 2022 net unrealised gain on investments allocated from the master fund of $236.1 million, multiplying from $1.7 million, while net realised gain more than doubled to $118.7 million from $47.0 million.
‘I am delighted to report that Brevan Howard Capital Management LP (the manager) achieved excellent returns in 2022 during a turbulent period in markets, the global economy and geopolitics,’ said BH Macro Chair Richard Horlick.
BH Macro cited last year’s economic environment last year as ‘prov[ing] favourable for our core macro strategies’, particularly regarding ‘surging inflation, combined with central banks reversing years of monetary stimulus, triggered high levels of volatility across a range of markets, creating a rich opportunity set’.
Looking ahead, BH Macro remained optimistic.
‘Coming into 2023, stock markets enjoyed one of their best starts to a calendar year and appeared to be embracing an expectation that despite the negative backdrop and continued inflation, that a soft landing would be achieved. That hope hit the skids in March when the Fed and the ECB turned more hawkish on inflation and unleashed a cascade of bank failures and retrenchments,’ Horlick added.
‘The optimistic scenario of a soft landing appears to be very much under review. Having said that, your Board remains confident that your Company‘s Manager is very well placed to weather these choppy waters and, given BH Macro’s longstanding track record of performing in such uncertain environments, the case for holding the Company in an investment portfolio remains as strong as ever.’
Despite improved performance, BH Macro opted against declaring a dividend payment to shareholders during 2022, unchanged from 2021.
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