- Advertisement -

Related

Brummer & Partners in rough waters

- Advertisement -

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

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

HedgeNordic Editorial Team
HedgeNordic Editorial Team
This article was written, or published, by the HedgeNordic editorial team.

Latest Articles

AI Isn’t the Transformation. Your Hedge Fund Operating Model Is.

By Ashish Shrestha, Senior Solutions Consultant at MAIA Technology: Artificial intelligence is moving quickly from experimentation towards implementation across the hedge fund industry. For...

Volt Diversified Alpha Posts Second-Best Month

Volt Diversified Alpha Fund delivered an estimated 5.8 percent gain in August, its second-best monthly performance since launching in early 2017, as its systematic...

The Lifecycle of a Trade: Where Nordic Managers Win or Lose Their Edge

Placing the trade is the easy part, but it is only as good as everything around it. The edge is rarely won at the...

Diversification is Easy to Buy, Hard to Get: The Liquid Alternatives Test

By Luc Dumontier, CIO Global Asset Management, iM Global Partner: Rarely have global portfolios carried such concentrated exposure to a single bet. US equities...

Unlocking a Third Active Lever

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Long-only active management traditionally has two levers for generating excess returns. The first...

Active and Alternative ETFs Gain Ground as Market Splits Between Cost and Value

The ETF market is entering a new phase in which growth is increasingly concentrated at opposite ends of the cost spectrum. While ultra-low-cost passive...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -