- Advertisement -

Related

Brummer & Partners in rough waters

Powering Hedge Funds

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

Core, Satellite, and Structural Premiums: PensionDanmark’s Approach to Emerging Market Debt

Many institutional investors have gradually internalized mandates once awarded to external managers, seeking tighter cost control, greater transparency, and improved alignment. Emerging market debt...

PIMCO: Similar Yields, Better Risk Profile in European High Yield

The U.S. high yield market has long been regarded as the global benchmark: deeper, more liquid, and broader in sector composition. For many allocators,...

Avoiding the Echo Chamber: Kraft’s Playbook in Tighter High-Yield Market

Delivering strong returns during a market rebound is one thing. Preserving performance momentum once spreads tighten and dispersion fades is another. That was the...

Tidan Deepens Volatility Arbitrage Expertise

Tidan Capital has strengthened its volatility and options arbitrage platform with the appointment of Laurent Keller as Senior Portfolio Manager. The Stockholm-based hedge fund...

Two Brothers, One Model, Ten Years: The Evolution of Othania

Exactly ten years ago, two brothers on the outskirts of Copenhagen set out to build their own asset management firm. Their idea was straightforward...

Rare Valuation Gap Between Small and Large Caps

Over the past five years, Swedish small caps have oscillated between a 10 percent premium and a 10 percent discount relative to large caps,...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -