Brummer Multi-Strategy 2025 commentary
The portfolio management team reviews the macroeconomic backdrop of 2025 and the market dynamics that shaped Brummer Multi-Strategy’s performance. We highlight key return contributors, outline recent platform developments and look ahead to the opportunities and risks in 2026.
Read the full commentary via the links. Below is a summary.
Executive summary
Return of 2025
As Brummer Multi-Strategy enters its 24th year, 2025 proved to be another year of solid absolute performance delivered with controlled risk, with BMS AIF at 8.9%* and BMS UCITS 13.2%, both net returns in USD. For BMS Cayman's performance, please see the full commentary linked above. As in prior years, the majority of performance was driven by alpha rather than market beta, reinforcing Brummer Multi-Strategy’s role as a diversifying allocation within investor portfolios. The portfolio continued to demonstrate resilience across shifting macro regimes, with a sustained focus on capital preservation and consistent compounding.
Main performance drivers
Performance was primarily driven by long/short equity strategies, which generated consistent alpha throughout the year, particularly on the short side, and proved resilient during periods of elevated factor volatility and narrow market breadth.
Discretionary macro and fixed income with a Nordic focus also contributed positively. A constructive view on the Swedish economy proved profitable as expectations of a Swedish GDP recovery, the prospect of fiscal stimulus ahead of the 2026 general election, and signals from the Swedish Debt Office indicating increased issuance volumes all contributed to upward pressure on bond yields.
Systematic trend-following detracted from overall performance. Shifting rhetoric from the US administration around trade policy and tariffs created a particularly challenging environment for trend followers in general, especially during the March-May period, as price action was choppy across most asset classes. Similarly, Systematic Macro struggled with markets driven by inconsistent tariff policies rather than fundamental data, reducing signal clarity and impairing the opportunity set.
Portfolio development and organisational enhancements
During 2025, Brummer Multi-Strategy continued the build-out of its fixed income vertical, broadening the opportunity set and further diversifying the portfolio’s sources of alpha. Continued strengthening of the internal organisation and processes has increased the capacity to evaluate, onboard and support a larger number of investment strategies within a single, coherent risk and operational framework. This has enhanced the ability to scale the programme in a disciplined manner and gradually increase the number of underlying strategies towards our longer-term ambition, without compromising the portfolio’s core characteristics.
Looking ahead
The investment landscape entering 2026 remains characterised by elevated uncertainty. Inflation dynamics are less predictable, fiscal imbalances remain large across developed economies, and geopolitical risks continue to create episodic market stress. At the same time, asset valuations, particularly in parts of the US equity market, leave limited margin for error.
In this environment, we believe that a liquid, market-neutral and genuinely diversified multi-strategy portfolio is well positioned. Brummer Multi-Strategy’s emphasis on alpha generation, disciplined risk management and adaptability across regimes remains central, alongside a continued focus on maintaining a well-diversified, highly liquid portfolio that is long the tails, while delivering consistent, uncorrelated returns and protecting capital across a wide range of market outcomes.
*Estimates per 31 December 2025
This is marketing communication. Please refer to the prospectus and to the KIID/KID of the relevant fund before making any final investment decisions.