Brummer multi-strategy hedge fund on track for strong equities gains, initial September estimates show

Financial data

Brummer & Partners’ multi-strategy hedge fund flagship was on track for a marginal September rise, the Swedish hedge fund pioneer said on Friday morning, as strong gains in equities-focused funds were offset by faltering trend-following strategies – but the BMS vehicle remains comfortably in the black year-to-date.

The long-running Brummer Multi-Strategy (BMS) fund – which invests in a range of single-strategy hedge funds – was set for a 0.2 per cent gain in September, bringing its year-to-date return to 4.4 per cent.  Meanwhile, the Brummer Multi-Strategy 2xL twice-levered version notched up an estimated 0.4 per cent rise in September, to bring its 2020 showing to some 7.7 per cent.

Early estimates for the month show that Black-and-White, a long/short equity strategy, drove Brummer’s performance for the month, advancing 7 per cent. The rise brings its Black-and-White’s year-to-date returns to approximately 12 per cent.

In addition, US-based long/short equity strategy Manticore has now gained close to 26 per cent in the nine months since the start of the year, according to Brummer’s monthly estimates, having risen some 0.2 per cent in September.

On the other hand, trend-following strategy Lynx gave back 4.4 per cent last month, according to initial estimates, and is now down roughly 4.7 per cent since the start of January.

The Stockholm-headquartered multi-strategy firm also registered losses in Florin Court, another systematic trend-following hedge fund, which fell 1.2 per cent last month, and is down 2 per cent for the year.

Elsewhere, Frost – the Brummer vehicle’s fixed income-focused manager – was roughly flat at -0.1 per cent in September, but remains well up for the year, at 10.6 per cent. Lynx Constellation recorded an estimated 0.3 per cent return in September, though remains down 1.3 per cent YTD.

Systemic equity fund AlphaCrest is up 3.9 per cent for the year, having added an estimated 0.4 per cent last month. Observatory – a long/short credit strategy – remains up 1.7 per cent year-to-date, despite losing almost 1 per cent last month.