High inflation rates and a strong labour market in the US led to increased concerns among investors that the US central bank may have to raise rates more aggressively than anticipated. 10-year US treasury yields have increased by around +25bps to 1.78%. At the same time escalating tensions between the US and Russia over Ukraine added to worries. There were few places to hide for investors. As the price of Brent oil continued to rally from $ 79.3/barrel to $ 91.2/barrel at month end, the energy equity market segment was able to gain. A few transportation segments such as shipping and aviation held up well throughout the month. Capesize-rates were hovering around soft levels of $10k/day. VLCC-rates have even furthered softened from ultra-low levels into partly negative territory. LNGC-spot rates have fallen to around $20k /day, whereas 1-yr time charter rates held up well at $90 k/day. The overall fund performance was positive. Overall hedging positions have contributed positively.
For more information you can find our latest Fact Sheet – January 2022.
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