Equities and macro names drive Brummer multi-strategy hedge fund’s February rebound

investment returns

Brummer & Partners’ flagship multi-strategy fund has made a strong start to February, with its equities- and macro-focused managers generating strong gains that have helped the Stockholm-based outfit reverse January’s losses.

The Brummer Multi-Strategy (BMS) vehicle’s SEK class has risen 4.5 per cent in the first two weeks of the month, which puts its year-to-date performance at 3.6 per cent. Meanwhile, the twice-levered Brummer Multi-Strategy 2xL version of the fund is up 9 per cent as of 15th February. On a year-to-date basis, it has advanced 7.1 per cent.

Eight out of the nine underlying managers that make up the BMS vehicle are in positive territory so far in February, Brummer said on Wednesday.

The biggest returns have come from strong performances in the stock-picking strategies, according to the mid-month update.

Long/short equity manager Manticore has soared in the first two weeks of the month, with a muscular 10 per cent advance, putting it up 9.6 per cent year-to-date. Black-and-White, another long/short equity strategy, has recovered from last month’s 5.3 per cent tumble and is up an estimated 6.7 per cent so far this month.

Lynx, the SEK-denominated trend following fund, is up almost 5 per cent, having earlier lost 0.3 per cent in the opening month of the year. But machine-learning strategy Lynx Constellation, which lost 2.5 per cent in January, remains on a downward spiral, shedding 1.2 per cent over the past fortnight.

Systematic trend-follower Florin Court has reversed January’s 1.2 per cent loss with a 1.9 per cent gain, while AlphaCrest, a quantitative equity manager, has added 2.5 per cent so far this month, and is now up 5.2 per cent since the start of 2021.

Macro-focused manager Arete is building on January’s 1.4 per cent rise with a 3.6 per cent surge, while long/short credit strategy Observatory, which made 0.7 per cent last month from relative value trades, has added another 0.7 per cent so far in February.

Frost – a fixed income relative value strategy – remains in positive territory this year, up 3.3 per cent since the start of January, having climbed 0.1 per cent in the first two weeks of February.
 

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