Monthly commentary BMS March 2017
Brummer Multi-Strategy’s (BMS) return in March was -0.7 percent (YTD 0.7%). Hedge Fund Research's (HFR) fund-of-funds Index increased 0.1 percent during the same period (YTD 2.0%).
Global financial markets showed mixed results in March. Despite the US Federal Reserve increasing interest rates, the US dollar weakened following a gradually worsening outlook on the US administration’s ability to enact its promised tax and infrastructure reforms. European equity markets strengthened but within commodities, metals and energies weakened.
Among the funds that BMS invests in, it was the TMT-focused fund Manticore that contributed the most to performance, mainly due to the fund's long positions. The trend-following fund Lynx and systematic macro fund Florin Court had a tough month in March, Lynx mainly due to its long positions in the US dollar and Florin Court mainly due to trend reversals in G10 bond futures.
BMS net exposure to equities and commodities, through the funds that BMS invests in, stayed around 40 percent and closed the month at approximately 35 percent. The portfolio allocation to Nektar, Manticore and Observatory increased while Talarium and Florin Court received a reduction in their weightings.
