Monthly commentary BMS February 2017
Brummer Multi-Strategy’s return in February was 1.0 percent. The Hedge Fund Research (HFR) fund-of-fund index rose by 0.9 percent.
The positive trend in financial markets continued in February driven by US equities and Trump’s growth agenda with expectations for infrastructure spending, lower taxes and higher interest rates. The US Dollar strengthened against most major European currencies while in commodity markets the price of metals led gains and natural gas posted sharp declines.
Among the funds in which BMS invests it was the systematic trend following fund Lynx which contributed the most to performance. The positive result was mainly generated by the fund's trend following models in the equity sector, where long positions in the US and European stock markets were the most profitable. The TMT L/S equity fund Manticore and the L/S equity fund Bodenholm also contributed to the positive performance as well as the credit strategy fund Observatory. The L/S equity fund Talarium was the only negative contributor primarily due to weak performance of the fund’s long book.
BMS’s net exposure towards equities and commodities ranged between +20 and +40 percent and closed out the month at around +40 percent. The portfolio allocation to Black-and-White and Observatory was increased during January, while Talarium and Florin Court received a reduced weight.
