Monthly commentary BMS April 2019
Brummer Multi-Strategy (BMS) SEK generated an estimated return of 0.6 per cent in April (0.8 per cent for the USD class).
The month of April saw a continued rise in equities following positive indicators across the global economy. Credit spreads tightened and bond yields in Europe and USA increased somewhat. US-China trade negotiations continued without a solution as did uncertainty surrounding Brexit. In commodities, oil led gains driven by Iranian and Venezuelan export sanctions.
The systematic trend-following fund Lynx was the month’s largest contributor with solid gains in equity indices, currencies and commodities outweighing losses in fixed income. Among the long/short equity funds, US TMT focused Black-and-White and Manticore had strong alpha contributions and posted gains, while Europe focused Bodenholm ended the month in the red. Macro fund Arete generated gains from positions in Asian equity indices while credit fund Observatory capitalized on bond positions in the energy sector. Nektar was the primary detractor in April with volatility and directional fixed income positions proving costly.
As of May 1st, the portfolio managers made minor changes to the allocations in the underlying funds but have decided to redeem all fund units in Nektar as of June 1st.
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