BH Macro reports slight rise in first half NAV

BH Macro reported a slight increase in the net asset value of its sterling shares at the half-year stage following buybacks and a discounted tender offer for 25% of the vehicle's stock following lacklustre results over the preceding two-and-a-half years.

NAV performance for the sterling shares over the first half as a whole was 1.64%.

The firm, which invests all of its assets in the Brevan Howard Master Fund Limited, aims to generate consistent long-term appreciation through active leveraged trading and investment on a global basis and has a track record for not being correlated with other markets and offering low volatility.

Nevertheless, said fund ended the six-month period to 30 June with a slight fall, following a similar performance over the course of the previous two years.

The discounted offer was meant to compensate for the widening gap observed between the value of the shares and its underlying performance and prospects since the middle of 2015.

BH Macro therefore repurchased $140m in shares worth approximately 8% of its total net asset value in the backhalf of 2015 and a further $116m over the first three months of 2016, after which it proceded to carry-out the tender at discounts of between 4% and 8%.

The shares thus bought were afterwads cancelled.

According to BH Macro, the first six months of 2016 were a convulse period for markets, with sharp movements observed in equity markets followed by an abrupt adjustment following the referendum vote amid uncertainty regarding the prospects for further rate hikes in the US and the impact of monetary eaasing in the Eurozone and Japan.

Given those conditions, the fund concentrating on preserving investors' capital.

"There were tactical opportunities for short-run trading gains, but no trend movements that might offer more significant returns for macro-trading strategies," BH Macro said in a statement.