Brummer Multi-Strategy monthly commentary December 2019
Brummer Multi-Strategy (BMS) SEK posted an estimated return of 0.4 per cent in December (0.6 per cent for the USD class).
Global equity markets closed the year on a high backed by continued de-escalation of USA-China trade tensions and continued dovish monetary policies. In currencies the pound strengthened following UK Prime Minister Boris Johnson’s landslide election victory. In commodities natural gas prices fell as an agreement was reached securing gas supply to Europe, gold rallied on the back of US dollar weakness and the price of crude oil rose following OPEC’s decision to cut production.
December was a good month for the trend following strategy Florin Court with gains from European power positions as well as from credit positions. Trend following strategy Lynx was down for the month losing money on currency positions and fixed income. Long/short equity funds Black-and-White, Bodenholm and Manticore together generated positive alpha contribution. Hong Kong based macro fund Arete was up for the month, largely thanks to long equity positions in USA and Hong Kong. The long/short credit fund Observatory also contributed positively, while the systematic equities fund AlphaCrest and machine learning fund Lynx Constellation were both down for the month.
As of January 2nd, BMS’s portfolio managers allocated approximately 2.2 percent to the newly launched Frost fund (fixed income relative value strategy focused on the Scandinavian markets).
