Portfolio Managers' commentary
Brummer Multi-Strategy’s portfolio managers comment on year-to-date performance, key market developments and recent updates on investment teams and the platform. Read the full commentary via the links. Below is a summary.
Executive summary
Year-to-date performance
In a market environment characterised by trade policy shifts, geopolitical uncertainty and equity rallies concentrated in a handful of companies, Brummer Multi-Strategy has delivered alpha through stock selection and robust portfolio construction. The portfolio has worked as intended: to generate diversifying returns regardless of broader market moves. At the same time, we have continued to strengthen the platform by adding new teams, establishing a Treasury function to improve balance sheet efficiency and expanding our offices in London and Abu Dhabi.
Performance drivers
The largest contributors were long/short equity strategies, which typically account for 60–75% of portfolio risk. Short positions drove returns, particularly during earnings seasons when companies missing expectations were punished sharply, especially in Europe.
Systematic trend-following strategies, by contrast, faced headwinds in a choppy market environment, particularly across currencies, fixed income and energy. Systematic macro also detracted slightly in an environment marked by political noise and uncertain macro data.
Market outlook
The global macro environment remains uncertain, shaped by trade conflicts, geopolitical tensions, rising debt burdens, and questions around central bank independence. In the US, growth is slowing, consumers are under pressure and labour markets are weakening, while equity valuations are historically elevated. Europe continues to show weak growth but may benefit from expansionary fiscal policies.
In this environment, our focus remains on maintaining a robust, diversified, and liquid portfolio, with the aim of generating alpha across scenarios while protecting capital in periods of broader market stress.
This is marketing communication. Please refer to the prospectus and to the KIID/KID of the relevant fund before making any final investment decisions.