Multi-manager hedge fund Brummer in positive territory as equities, credit and fixed income strategies advance

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Brummer & Partners, the Stockholm-based multi-strategy hedge fund firm, has seen its flagship vehicle advance further on the back of strong stock market gains in August, with equity, credit and fixed income funds all in positive territory.

The Brummer Multi-Strategy (BMS) fund – which invests in a range of single-strategy hedge funds – made 0.4 per cent last month in its USD and SEK classes, bringing its year-to-date return to 4.2 per cent.

The Brummer Multi-Strategy 2xL twice-levered version meanwhile rose 0.7 per cent in its SEK class and 0.8 per cent in its USD class in August, and is now up 7.3 per cent since the start of 2020.

As the S&P 500 surged in August, long/short equity hedge funds Manticore and Black-and-White powered BMS’s August rise, generating strong alpha, particularly in long trades. Manticore added almost 3 per cent, while Black-and-White was up close to 1 per cent.

Frost, the fixed income-focused fund, made 2.9 per cent, taking gains on the back of the Riksbank’s continued expansion of its balance sheet.

Systemic equity fund AlphaCrest was up 1 percent, as Observatory – a long/short credit strategy – rose 0.2 per cent. Lynx, a trend-following strategy, was flat for the month.

On the downside, the Swedish hedge fund pioneer registered losses in several strategy types, notably managed futures and macro.

Florin Court, a systematic trend-following hedge fund, was caught out by the sharp turnaround in fixed income markets during August, resulting in a 2.4 per cent loss for the month.

Elsewhere, Hurricane Laura’s impact on the Gulf of Mexico sent natural gas prices upwards, which put the squeeze on machine-learning strategy Lynx Constellation, which dipped 1.9 per cent for the month. Macro hedge fund Arete was struck by volatile stock markets in Hong Kong, and lost 0.7 per cent.