Monthly commentary BMS January 2018
Brummer Multi-Strategy (BMS) had a strong start to 2018, gaining 2.6 percent in January. Hedge Fund Research’s Fund-of-Funds Composite Index (HFRI) increased by +2.4 percent during the same period.
Global equity markets reported significant gains across the board in January. In currencies, the US dollar weakened against the remaining G5 currencies along with the Swiss franc. Meanwhile, interest in the US and Europe have started to increase. Oil, platinum and wheat were the winners in commodities.
Six of the eight constituent funds contributed to BMS’s return in January. The top contributor was long/short equity fund Manticore, which gained 6.9 percent, while being one of the highest weighted funds in the BMS portfolio. In terms of returns, CTA fund Lynx and Asian macro fund Arete were otherwise the star performers, reporting gains of 8.6 percent and 8.1 percent respectively. Observatory, Nektar and Bodenholm also had a positive effect on BMS’s result, while Black-and-White and Florin Court detracted slightly from BMS’s performance.
BMS’s Portfolio Managers increased the allocation to Observatory ahead of February.
