Monthly commentary BMS April 2017
Brummer Multi-Strategy (BMS) gained 0.6% in April and has returned 1.3% so far in 2017. Hedge Fund Research’s fund-of-funds index also increased by 0.6% during the month bringing its year-to-date performance to 3.0%.
Global financial markets were positive in April as equity markets in Europe rallied on the back of French election results and US equities posted gains led mainly by technology, healthcare and cyclical sectors. In currencies, the US Dollar weakened against the Euro and the British Pound. Fixed income markets saw little change with US bond yields posting minor increases. Within commodities, metals declined while the agricultural sector posted gains.
Among the funds that BMS invests in, the top contributor was the TMT-focused fund Manticore. For Manticore the leading sectors for the month was software and internet. The trend following fund Lynx was the only negative performer in April and losses were primarily driven by currencies and commodities. In commodities Lynx continued to struggle particularly as a result of reversals in energy prices.
BMS’s net exposure towards equities and commodities ranged between +20 and +40 percent and closed out the month at around +20 percent. The portfolio allocation to Nektar, Manticore and Observatory increased while Lynx received a reduction in its weighting.
