Monthly commentary BMS January 2017
Brummer Multi-Strategy’s return in January was 0.4 percent. The Hedge Fund Research (HFR) fund-of-fund index rose by 0.8 percent.
US equities strengthened during the month primarily driven by technology, healthcare and commodity sensitive sectors while the US dollar weakened against most currencies. Within commodities metal prices surged while energy prices fell led by natural gas. Within the hedge fund industry it was generally a positive month for equity strategies while trend-following/CTAs had a difficult period.
The largest positive contributor to BMS was the L/S equity TMT fund Manticore which benefited from long positions in North American semi-conductor names. The L/S equity funds Bodenholm and Black-and-White also contributed to the positive performance as well as the credit strategy Observatory. As with the overall hedge fund industry the systematic funds, in which BMS invests, had a tough month. The systematic fund Florin Court had a difficult month with losses primarily in fixed income and commodities.
BMS’s net exposure towards equities and commodities ranged between +20 and +40 percent and closed out the month at around+25 percent. The portfolio allocation to Arete, Black-and-White and Manticore was increased during January, while Florin Court received a reduced weight.
