BH Macro (BHMG) H2 2024 earnings summary

Executive summary

• NAV per share rose 5.86% for Sterling shares and 4.92% for US Dollar shares in 2024; share price returns were higher due to buybacks, with Sterling and USD shares up 10.63% and 10.61% respectively.

• £116 million was spent on buybacks, narrowing the average discount to NAV from 11.1% to 7.8% for Sterling shares by year-end; buybacks contributed 0.98% to Sterling NAV.

• Class closure votes were triggered due to persistent discounts; both Sterling and USD shareholders overwhelmingly voted against closure in early 2025.

• The company maintained its investment strategy amid global political and economic upheaval, with assets under management at the manager reaching $35 billion.

Financial highlights

• Net assets at year-end were $1,984 million, down from $2,075 million in 2023.

• Net total gain for 2024: £68.2 million (Sterling shares), $5.7 million (USD shares), compared to prior year losses.

• NAV per share at year-end: £4.35 (Sterling), $4.48 (USD), up from £4.11 and $4.27.

• Ongoing charges ratio increased to 2.95% (Sterling) and 3.06% (USD) from 2.16% and 2.14% in 2023, mainly due to higher performance fees.

• No dividends were paid in 2024.

Outlook and guidance

• The manager expects a dynamic macro environment in 2025, with opportunities and risks from US political realignment, divergent global growth, and ongoing geopolitical tensions.

• The Fed is expected to cut rates further, while Europe faces softness and China confronts structural headwinds; Japan is tightening policy.