As Corona-infections have further increased in Europe and the US during the month of March governments had to enforce quarantine restrictions. These had a particularly negative impact on the sectors of travel and transportation. Given the spill-over-effects into the entire economy risky assets have seen significant declines during the month. An OPEC + committee meeting in Vienna which was held on the 6th of March failed. Supply cuts were not agreed but instead Saudi Arabia has decided to ramp up production and flood the oil market with an additional 2- 3 mn. barrels/day. This supply glut pushed the price of Brent-oil to a new record low of US$ 22.75/barrel at the end of the month. Within the portfolio energy stocks had strong negative returns. Portfolio hedges via the S&P500 Futures, Stoxx600 Oil&Gas as well as Stoxx600 Travel & Leisure Futures contracts and individual short positions within the energy, aviation and shipping segment have cushioned the losses in the calendar month.
More detailed fund information can be found in the attached Factsheet March 2020.
Seahawk Investments GmbH