Monthly commentary BMS June 2019
Brummer Multi-Strategy (BMS) SEK generated an estimated return of 2.1 per cent in June (2.4 per cent for the USD class).
Following last month’s sell-off, global equities rallied in June while government bond yields continued to fall driven, i.a., by a cautious Fed and an accommodative ECB. The U.S. and China’s decision to renew talks following the G20 meeting at the end of June offered some support to markets. In currencies, the US dollar generally weakened while in commodities, gold and oil strengthened.
The systematic trend-following funds Lynx and Florin Court both performed very well in June, both up over 5 per cent. Gains were predominantly attributable to long equities and bonds for Lynx, while Florin Court made money on credit and fixed income positions. The long/short equity strategies also contributed positively as did the systematic equities fund AlphaCrest. The macro fund Arete also generated gains, navigating the risk-on rally well while the long/short credit fund Observatory was essentially flat for the month.
