Monthly commentary BMS October 2017
Brummer Multi-Strategy (BMS) returned 1.8 percent in October, bringing year-to-date performance to 7.4 percent. Meanwhile, Hedge Fund Research’s Fund-of-Funds Composite Index gained 1.2 percent, which brings its performance in 2017 to 6.8 percent.
Global equity markets continued to soar in October, with large cap Technology and Oil being the primary sectors leading gains in the US. Meanwhile, the US dollar strengthened following increased expectations for further rate hikes by the Fed. In commodities, energy prices led by oil, and metals led by copper and aluminium experienced significant gains.
BMS’s return in October can predominantly be attributed to the long/short equity and systematic/trend-following strategies. Manticore had another stellar month and generated the largest contribution to BMS, as it is also one of the highest weighted funds in the portfolio. Black-and-White and Bodenholm generated positive returns as well, in both cases a result of both long and short positions. Lynx was the top performer of the month among the funds in BMS, with the lion’s share of gains coming from equity indices and commodities. Fellow systematic/trend-following fund Florin Court also managed to benefit from positive movements in stocks, which together with positions in credit and energy contributed to the fund’s best month since inception.
Ahead of November, BMS’s Portfolio Managers increased the allocation to Florin Court and reduced the weights of Nektar and Observatory.
