Equity markets started favourably into the new year. US – Iran tensions have temporarily pushed the price of Brent to 70.0 US$/barrel. Subsequently, inventory data issued by the US DOE have shown high inventory levels of crude and oil products. Later, the outbreak of the “Corona” virus ” in Mainland China became a serious epidemic. The standstill of parts of China’s economy had a significant impact on the sectors of transportation and energy. Flights into China have largely been suspended. Given the prolonged shut-down of factories China had substantially reduced commodity imports. The price of Brent oil fell back to 58.16 US$/barrel and thereby realising its biggest monthly drop of -12% since November 2018. The Price of Gas (Henry Hub) fell by 16% to a record low of 1.85 USD/MMBtu. Freightrates for crude (VLCC) and Dry Bulk (Capesize) have dropped between 60 and 70% on a monthly basis. LNG – shipping stocks and energy shares had the greatest impact on the negative fund return.
More detailed fund information can be found in the attached Factsheet January 2020.
During the month of January the fund has generated a performance of -7.8% for the USD share class and -6,84% for the EURO S-share class.
The overall fund performance since inception on the 22nd of May 2019 was at -1,24% for the USD S-share class and -0,12% for the EURO S-share class.
Seahawk Investments GmbH