Topsy-turvy markets see Brummer’s multi-strategy hedge fund flagship go into reverse

Reverse gear

Stockholm-based Brummer & Partners’ flagship multi-strategy fund has dipped into negative territory in recent weeks according to mid-month estimates for March, with long/short equity losses offsetting gains made by other strategies.

The Brummer Multi-Strategy (BMS) vehicle’s SEK class fell 1.1 per cent during the first two weeks of March, reversing February’s 3.2 per cent advance to leave its year-to-date return at 1.2 per cent.

At the same time, the twice-levered BMS 2xL version of the fund, which climbed 6.4 per cent last month, has fallen 2.2 per cent so far this month, Brummer said on Wednesday. It remains up 2.2 per cent since the start of 2021.

Among the underlying funds in the vehicle, Florin Court, a systematic trend-follower, has advanced 3.8 per cent so far in March, while quantitative equity manager AlphaCrest rose 2.7 per cent, and macro-focused fund Arete is up 1.9 per cent.

But long/short equity strategy Black-and-White has tumbled 7.3 per cent during the same period amid recent stock market uncertainty. The strategy has endured a topsy-turvy 2021 so far, shedding 5.3 per cent in January before rebounding 6.7 per cent in February. 

Among the other funds in the long-running multi-manager vehicle, fixed income relative-focused Frost has made 1.4 per cent, while SEK-denominated trend follower Lynx is up 0.8 per cent. But Lynx Constellation, a machine learning strategy, has lost 2 per cent so far this month.