Stockholm (HedgeNordic) – After a relatively flat first half of 2024, marked by noticeable month-over-month volatility, discretionary macro fund Brobacke Global Allokering advanced 7.6 percent in the first half of July. This strong performance was primarily driven by Nils Brobacke’s high exposure to ETFs in gold and silver miners, as well as oil service companies and explorers.
Gold prices reached an all-time high in May, driven by factors such as U.S. rate cut expectations, China’s stimulus measures, and geopolitical tensions. At the same time, silver prices reached their highest level in over 11 years. Although both metals slightly edged down in June from their recent May highs, they have embarked on a fresh uptrend in July. Brobacke Global Allokering’s exposure to ETFs in gold, silver, and copper miners has significantly contributed to the fund’s gains in the first half of the month. Despite oil snapping a four-week winning streak just last Friday, the fund still benefited from its exposure to oil services and explorers.
“I’m currently navigating this bull market, which I expect to last another 6-12 months.”
Exposure to individual stocks also contributed to Brobacke Global Allokering’s performance in July. “Single names that contributed include a few tech bets like Tesla and Palantir,” says Brobacke. “Additionally, in the past week we have seen some big flows into crypto miners, banks, and biotech, with Riot Platforms, Customers Bancorp, and KalvVista Pharmaceuticals being great trades for the fund,” he adds. Brobacke employs a discretionary global macro strategy that allows flexibility in betting on market directions and trading across different asset classes and time horizons. His approach focuses on anticipating price movements in equity, currency, bond, and commodity markets based on market-related information such as price data, sentiment analysis, and capital flows.
“Gold is in a new bull market and there are great returns to derive from the precious metal space in years.”
After ending 2023 in positive territory with a 6.1 percent gain following an 18.7 percent surge in the last two months of the year, Brobacke Global Allokering experienced both ups and downs in the first six months of 2024, ultimately ending the first half of the year up 0.2 percent. Following an advance of 7.6 percent in the first half of July, Brobacke is optimistic about a continued bull market over the upcoming months. “I’m currently navigating this bull market, which I expect to last another 6-12 months,” says Brobacke, emphasizing small caps in sectors such as banks, biotech, and energy as the strongest segments. He also believes that “Gold is in a new bull market and there are great returns to derive from the precious metal space in years.”
