Brummer & Partners, the Stockholm-based multi-strategy hedge fund firm, has generated positive returns for the first half of 2020, with US long/short equity, credit and macro strategies all driving performance in its flagship strategy in recent weeks.
Despite a recent spike in market volatility, the Brummer Multi-Strategy multi-manager fund – which invests in a range of single-strategy hedge funds – gained 1.5 per cent in June, while the Brummer Multi-Strategy 2xL (BMS 2xL) added 2.8 per cent.
The recent positive momentum – June’s gains were the third consecutive month of positive returns – means the multi-strategy fund is now up 2.6 per cent for the first half of 2020. The twice-levered vehicle has advanced 4.4 per cent over the six-month period.
Having seen performance squeezed earlier in the year during March’s market turbulence, the Swedish hedge fund pioneer has weathered the recent volatility increase, as hopes of renewed economic activity and continuing fiscal stimulus were buffeted by rising geopolitical tensions and fears of second wave of coronavirus in the US.
The BMS vehicle’s two US long/short equity funds have led the way lately, with Black-and-White gaining 5.4 per cent and Manticore rising 2.5 per cent amid what Brummer described as a “good alpha environment” last month.
The Hong Kong-based macro fund Arete meanwhile added 2.2 per cent in June, profiting from rising gold prices and relative value-based bets in equities.
Observatory, the fund’s long/short credit strategy, capitalised on idiosyncratic risk in its target markets, generating 2.1 per cent. Frost, which focuses on relative value trades in interest rate markets, added 1.9 per cent, while the machine learning-based fund Lynx Constellation rose 1.3 per cent.
On the downside, Florin Court lost 2.5 per cent for the month, as the systematic trend follower saw its energy bets sour as Russian and OPEC supply cuts pushed oil prices higher during June. AlphaCrest dropped 2 per cent, and Lynx was marginally in the red at 0.6 per cent.
