Monthly commentary BMS November 2017
Brummer Multi-Strategy’s (BMS) performance in November was flat (0.0 percent). Year-to-date BMS has returned +7.3 percent. Hedge Fund Research’s Fund-of-Funds Composite Index increased by +0.1 percent in November, bringing its performance in 2017 to +7.0 percent.
Global equity markets diverged in November, with TMT driving gains in the US, while European stocks tumbled amid renewed Brexit concerns, and Asian markets posted mixed performance. US interest rates, especially long-term rates, decreased at the same time as the Dollar weakened against most currencies. In commodities, energy prices continued to rise with oil and natural gas being the main winners.
BMS’s return in November was flat after mixed performance by the underlying funds. Long/short equity strategies Bodenholm and Manticore were the top contributors during the past month, while Black-and-White and relative value and macro fund Nektar detracted from BMS result. In the case of Black-and-White, reversals in previous winners hurt performance, while Nektar’s return was negatively affected by a number of different investment themes, including Sweden. The remaining strategies all produced slightly positive returns.
Ahead of December, BMS’s Portfolio Managers increased the allocation to Bodenholm and reduced the weight of Nektar.
