Smart money moves: Hidden value in this billion-pound hedge fund
A well-known hedge fund trades below its real value‚ creating a rare buying chance. Its track-record shows strong defense during market downturns while beating global markets performance
The £1.4bn hedge fund BH Macro presents a smart buy opportunity as its trading at 10% below asset value: this could be a safe spot if Donald Trump returns to office
The fund managed by Alan Howardʼs team shows impressive stats - it beat world markets since its start in 07 with half the ups-and-downs (which is super-rare for hedge funds). The companys goal is simple: make money like going up stairs - no big jumps up or down
During rough times it really shines: when covid hit and markets dropped 12.5% it jumped up 14%; in 22 when everything was shaky it made 21.9%. But its not all perfect - the fund had some not-so-great moments:
- Lost 0.9% in 15
- Dropped 4.4% in 17
- Went down 1.8% last yr
Recent problems started when two big money firms merged (Rathbone and Investec) and got stuck with too many shares; this made other investors nervous. The funds been buying back shares but its not helping much - now they might need to ask investors if they want to keep going
The good news: you can buy in for 402p per share which is way less than what its worth; plus it just made 4.2% in mid-nov when markets got jumpy. Sure its fees are high at 2.2% but getting it at todays discount basically covers 4-and-half years of those costs
