Brummer Multi-Strategy slides into red in May, as dispersion reigns across underlying funds

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Brummer & Partners’ flagship multi-strategy fund has slipped into the red so far in May according to mid-month estimates, with a sharp dispersion in returns across its underlying equity, macro and trend-following strategies – but the long-running Stockholm-based vehicle remains in positive territory year-to-date. 

Brummer Multi-Strategy, which comprises a range of hedge fund sub-strategies, has lost 0.8 per cent in the first two weeks of May, the firm said in an update on Tuesday. Despite the recent dip, the strategy’s SEK class is still up 1.1 per cent since the start of January. 

The twice-levered BMS 2xL version of the fund has dropped 1.6 per cent so far this month, but its year-to-date returns stand at 2 per cent. 

Long/short equity manager Black-and-White is tanking this month, registering a hefty 7.2 per cent slide so far in May, bringing its year-to-date losses to 11.6 per cent. On the flipside, AlphaCrest has generated an 11.2 per cent return since the start of 2021, with the quantitative equity fund rising 2.5 per cent in the first two weeks of May. 

Florin Court, the systematic trend-follower, has made 4.2 per cent since the start of this month, putting the strategy up 7.5 per cent year-to-date.  

Lynx and Lynx Constellation have both advanced 2.5 per cent so far this month. But while Lynx, an SEK-denominated trend-follower, is up 6.6 per cent since the start of January, machine learning Constellation has fallen 3.1 per cent into the red over the same four-and-a-half-month period. 

Elsewhere, several of Brummer’s underlying strategies which are stumbling this month remain comfortably in positive territory year-to-date. 

Macro hedge fund Arete has lost 1.6 per cent over the last fortnight, but has generated a 3.3 per cent return since the start of January.  Long/short equity strategy Manticore has lost 2.3 per cent so far in May, but remains up 3.2 per cent YTD. 

Similarly, Frost is marginally down 0.7 per cent this month, but the fixed income relative value strategy has steadily risen 4.2 per cent overall this year, while long/short credit hedge fund Observatory remains positive this year, up 2 per cent, despite sliding 0.2 per cent so far this month.