BH Global is a macro hedge fund that aims to deliver strong risk-adjusted NAV returns in all market conditions. It invests in the range of trading strategies offered by Brevan Howard across multiple asset classes.
BH Global has a wider remit than its sister trust BH Macro, in being able to invest beyond developed-market interest rates and foreign exchange, and take more risk in a wider range of opportunities within markets including credit, equity and emerging markets.
One of the attractions of BH Global is its ability to generate returns irrespective of the direction of bond or equity markets. As we discuss in the Portfolio section, this is largely down to Brevan Howard’s strategy of harnessing a variety of different traders who use options to create trades with asymmetric return profiles.
Whilst it is not specifically designed to do so, BH Global has typically delivered strong returns when equity markets struggle. As we note in the Performance section, this has been particularly noteworthy since 1 February 2020, with NAV returns of 18% over the seven weeks to 21 April, relative to the MSCI ACWI in sterling of -11%, meaning outperformance of 29%.
Over the longer term (the ten years to 31 March 2020), BH Global has delivered compounded NAV returns for investors of 4.8% p.a. It has achieved this with annualised volatility of 6% and a maximum drawdown of 4.6%. BH Global’s NAV has exhibited low correlation to equities since IPO (an average of 0.13 on a rolling 12-month basis since IPO), and also to bonds (an average of -0.04).
Brevan Howard’s strong risk controls are built into the DNA of the organisation. Risk is controlled through strict risk limits at a trader and portfolio level. Looking at monthly data since inception, it is rare to see a month in which the NAV falls by more than 2%.