BH Macro and BH Global could be merged into a single investment trust after a suggestion by a major shareholder to bring the two portfolios together.
A shareholder update from BH Macro today revealed that the trust’s board has been approached by Investec Wealth and Investment about the possibility of a combination with BH Global.
Investec Wealth and Investment is the largest shareholder in BH Macro and holds a significant amount of BH Global. It is understood that the firm has made the suggestion to BH Global’s board as well.
BH Macro’s board believes Investec’s proposal is a “positive suggestion”.
“Instead of each company potentially continuing in a smaller, more illiquid form, with significantly overlapping investment portfolios, the [BH Macro] board sees significant merit in the suggestion that the interests of shareholders in both [BH Macro] and [BH Global] would be best served by a combination into a larger, single, company with an exit opportunity being offered to those shareholders who no longer wished to remain invested,” it added.
BH Macro is a feeder into macro hedge fund Brevan Howard Master Fund, which aims for capital growth through a combination of global macro and relative value trading strategies, while BH Global invests all its assets in Brevan Howard’s Multi-Strategy Master Fund. These are broadly similar strategies, with the main difference being that Brevan Howard Master Fund generally trades in G7 markets only.
Both trusts are managed by Brevan Howard Capital Management, which is supportive of discussions between the two about the merger.
BH Macro’s board said it is willing to enter discussion with BH Global “as soon as practicable”. Investec has requested that these discussions take place before the launch of the tender offers that have been previously announced by each company, following shareholder approval of the changes to their respective management agreements in March.