Brummer Multi-Strategy monthly commentary March 2026
Brummer Multi-Strategy USD and Brummer Multi-Strategy 2xL (Bermuda) USD posted estimated returns of -1.2 per cent and -1.9 per cent respectively in March, bringing year-to-date returns to an estimated 2.3 per cent and 4.0 per cent respectively.
Markets
March was dominated by the war in Iran and its corresponding economic fallout which has fundamentally altered the macroeconomic outlook and triggered an energy crisis with far reaching ramifications.
Commodity markets saw a significant spike in volatility, unsurprisingly because of the chokehold Iran holds on the Strait of Hormuz and its attacks on petroleum facilities in neighbouring countries. Given that approximately 20-25% of global seaborne oil and natural gas exports passes through the Strait, crude oil futures spiked well over $100/barrel, reaching its highest levels since the invasion of Ukraine and triggering an energy crisis. With many economies relying on importing energy that passes through the Strait, the effects could very well be crippling in the long term. Impacted by the asset class-wide sell-off, precious metals such as gold and silver, which have previously experienced historic rallies, saw a rather steady drop in prices over the month.
Equity markets sold off with some indices seeing close to double-digit drops (e.g. Korea), while US indices like the S&P 500 closed the month down 5%. Under the surface, however, markets have seen significant deleveraging and factor rotations within crowded sectors such as in the AI space with previous winners such as semiconductors reversing, while software rallied.
Bond markets followed suit, as the immediate inflationary pressure and subsequent sell-off caused a spike in government bond yields particularly in the short end in Europe. In the US, markets priced in a more prolonged period of restrictive policy, with expectations for Federal Reserve rate cuts pushed out to summer 2027, compared to expectations for June easing just weeks earlier.
FX markets moved largely sideways, with the US Dollar strengthening somewhat on the back of anticipations of tighter fiscal policy from the Federal Reserve.
Brummer Multi-Strategy
BMS proved resilient in March given the market turmoil and sell-off across asset classes.
Systematic trend following contributed positively this month. The developed markets trend-follower was quick to adapt positioning and made solid gains in crude oil, natural gas and gasoline futures while losses in Asian equity indices and precious metals detracted. Also contributing to performance were minor gains in FX and fixed income. Trend following in alternative markets detracted as modest gains in commodities were outweighed by losses, predominantly in fixed income, but also in equity indices, credit and FX.
Fixed income and macro detracted in March given chaotic and erratic bond markets with significant deleveraging, positioning washout, and repeated whipsaw dynamics proving a challenging environment.
Market neutral long/short equity detracted in March with the rapid deleveraging in the US tech space being particularly painful. Other sectors within the long/short equity part of the portfolio have been more resilient and profitable. Strategies focused on less crowded sectors and regions, including European healthcare and real estate, have generally performed well.
Return estimates*
| Last month | Year to date | |
|---|---|---|
| Brummer Multi-Strategy B USD** | -1.2% | +2.3% |
| Brummer Multi-Strategy 2xL (Bermuda) USD | -1.9% | +4.0% |
Monthly contribution by strategy type (est.)
Capital allocation (est.)***
* These estimates apply to investors who have been invested in the funds since inception. Please note that the final results may deviate.
** Brummer Multi-Strategy B USD unit class was launched August 1st 2024. Year to date performance, up to that point in time, is calculated using the Brummer Multi-Strategy A SEK unit class, adjusted for currency hedging.
*** Allocation per strategy tpe is shown as percentage of total allocated capital. Brummer Multi-Strategy may use leverage and/or allocate to strategies targeting higher volatility than their reference strategy, which means that the total allocated capital can vary over time and be higher than the fund's net asset value.
This is marketing communication. Read the fund's information memorandum and key investor document (KID) before making any definitive investment decisions.