Brummer Multi-Strategy monthly commentary November 2019
Brummer Multi-Strategy (BMS) SEK posted an estimated return of 0.0 per cent in November (+0.2 per cent for the USD class).
Developed market equities continued higher in November, particularly US equities, buoyed by positive sentiment surrounding a US-China trade deal and increasing confidence concerning global growth. US yields rose as did the US dollar with the federal reserve regarded as unlikely to lower rates in the near future. In contrast emerging markets equities had a tougher month as did emerging market currencies. In commodities the price of gold decreased.
BMS finished November flat for the month. Performance was mixed among L/S equity funds, Manticore generated alpha from both its long and short book, while Bodenholm struggled with alpha related losses. Black-and-White was essentially flat. Trend following strategies Florin Court and Lynx were both positive for the month. Florin Court generated gains in currency and credit positions while Lynx profited from rising equities and a strengthening US dollar. The Hong Kong based macro fund Arete also contributed positively capitalising on the falling price of gold and the rise in US equities. Machine learning fund Lynx Constellation had a solid month with profits in equities, fixed income and currencies. The systematic equities fund AlphaCrest struggled during the month and long/short credit fund Observatory detracted marginally.
As of December 1st, the portfolio managers made some minor adjustments to the portfolio.
