Brummer Multi-Strategy UCITS monthly commentary August 2025

Markets

August began with weaker-than-expected U.S. employment data, leading to a decline in the S&P 500 and a drop in the 2-year Treasury yield. Sentiment later improved, supported by solid economic releases and dovish signals from Fed Chair Powell at Jackson Hole. The U.S. yield curve steepened following increased political pressure on the Fed, including attempts by Donald Trump to dismiss Governor Lisa Cook.   

Within currency markets, the prospect of accelerated rate cuts, coupled with political pressure on the Fed, weighed on the dollar, which weakened against all other G10 currencies.  

In Europe, fiscal developments were in focus. France faced renewed scrutiny following the announcement of a September 8th confidence vote. Investor concerns led to wider spreads between French and German 10-year government bonds. 

In commodity markets, oil prices slid further with Brent Crude dropping -6% in August. Gold prices continued higher, supported by a weaker dollar and policy instability.  

Brummer Multi-Strategy UCITS

Market neutral long/short equity was the biggest driver of returns with positive performance across almost all sectors. Short alpha continued to be the dominant source of returns for both the month and year. 

Systematic macro was solidly profitable within currencies (JPY/USD and NOK/USD) and equity indices (China and Taiwan).  

Systematic trend detracted marginally, with gains in equity indices (mainly China and Japan) offset by losses within fixed income (US 2-year the largest detractor within rates) and FX (JPY/USD the biggest loser). 

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