Brummer & Partners in rough waters

Stockholm (HedgeNordic) – For the Swedish hedge fund manager Brummer & Partners, February wasn’t the best of times, looking at the numbers for all the funds within the goup.  Brummer Multi-Strategy (BMS) ended the month in negative territory by -1,9% (acc. 2016: -2,5%). This is the worst start of a year for the BMS since the launch in 2002. The Nordic Hedge Index (NHX) advanced by 0,5% in February but remains under water by 0,6% for the year.

Marked by the high volatility on all global markets, the rapid movements took it’s toll on almost all of the funds within BMS, allthough being close to market neutral, Brummer says in a comment on the monthly result.

Weighing heaviest on the multi-manager portfolio during February was the tech fund Manticore, with -11%, due to very large swings in tech stock pricing. The biggest positive contribution came from the systematic trend following CTA, Lynx, and quant/macro driven Florin Court. Both of them succeeded in catching the very strong trends during the month, in particular within fixed income and commodities.

Due to the fact that BMS performance has been below expectations, changes have been made to the portfolio composition. BMS has redeemed all holdings in Zenit (the actual starting point of the Brummer hedge fund history), Canosa and MNJ. The reasons behind it are the fact that none of these have contributed enough to the overall performance for BMS.

The capital is now distributed among the remaining funds. The newest family members, Florin Court and L/S manager Bodenholm will get larger allocations, according to the managers. Also the ’old timers’ within the group – Lynx and Nektar – will see more money coming their way when BMS re-allocate the portfolio.

 

Picture: (c) Romolo-Tavani—shutterstock.com

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