General Market Review 

Global equity markets had a solid month in March as investors continue to expect a soft landing of the US economy. Moreover, expectations are high that Artificial Intelligence will lead to productivity and corporate profit gains. Despite elevated inflation rates, the market is taking comfort in the FED’s dovish tone.

Treasury and Bund yield activity was largely muted. The US 10-year treasury yield has remained nearly unchanged at 4.2%, while the German 10- year Bund yield decreased slightly by -10bps from 2.4% to 2.3%.

In the US, the consumer price index for the month of February came in at +3.2% vs. 3.1% (headline) and +3.8% (core) vs. 3.9% in the previous month.

US economic data was resilient. Non-farm payrolls and private payrolls increased by 275k and 223k for the month of February versus a previous reading of 353k and 317k, On the other hand, durable goods orders increased by +1.4% during the month of February, whereas capital goods orders (ex-defense) have increased by +0.7%, respectively.

In Europe, inflation readings were nearly unchanged. The Euro-Area Consumer Price Index came in at 2.6% (headline) and 3.1% (core) for the month of February which was nearly unchanged vs. the prior month.

European economic activity has picked up slightly. Purchasing manager indices moved higher. The Eurozone Manufacturing PMI (Purchasing Manager Index) came in at 47.0 and the Services PMI at 50.5.

The MSCI World Index gained by +3.2% (USD den.) and the MSCI Europe Index gained by + 3.9% (EUR den.).

Energy and Transportation

Oil prices rose during the month of March on the prospect of OPEC+ staying the course on production cuts. The oil price was further supported during the month as ongoing attacks on Russia’s energy infrastructure as well as falling U.S. rig count tightened oil supply.

The price of Brent Oil has increased from $83.6 to $ 87.5 per barrel during the month of March.

The Stoxx 600 Oil and Gas Index has gained by +6.5 % in March. The S&P Global Clean Energy Sector Index was nearly flat vs. the previous month with a slight increase of +0.5% during the month of March.

Transportation segments have recorded a solid performance throughout the month. The Dow Jones Transportation Index increased by +2.5% whereas the US Global Jets Index increased by +4.3% in the month of March.

On the other hand, the Russell 2000 Marine Transportation Index increased by +3.1%. Capesize rates have softened from $31k/day to $20k/day at month end. Container freight rates fell by another -13% vs. the previous month. The SCFI (Shanghai Containerized Freight Index) is still up by +81% year-on-year. Crude oil tanker (VLCC – Very Large Crude Carrier) rates have further increased from $33k/day to $ 35k/day at month end, whereas product tanker rates (MR earnings) have remained unchanged at a level of $38k/day. VLGC (Very Large Gas Carrier) rates have increased further from $44k/day to $ 50k/day at month-end.

Fund Performance

The fund performance of both the USD as well as EUR-denominated share classes was positive.

Within transportation, the shipping long book had an overall positive contribution of 2.0%. Long positions in the offshore-supply segment, dry bulk segment, crude and product sector segment contributed a positive +1,5%, +0.5%, and 0.2% respectively. The short shipping book in the container segment had a negative contribution of -0.2%.

In the area of freight services, the short book had a negative contribution of -0.5% whereas short positions in other transportation segments had a negligible performance effect. The aviation long book was flat in the month.

Within the energy segment long position in the oil & gas long book had a positive contribution of +2.0% whereas short positions in the segment had a negative contribution of -0.5%. The long book in the renewable energy segment had a mildly negative contribution of -0.2%.

Overall hedging positions via short index futures have contributed negatively by ca. -0.4% to the overall performance result.

For more information, you can find our latest Fact Sheet – March 2024.

Seahawk Investments GmbH

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Foreign Exchange Fluctuations may have a negative impact on performance results.

Please note that the information from Lipper Leaders relates to the previous month. All rights reserved. Lipper Leaders – © 2024 Lipper Lipper Leaders Ranking Criteria – Ratings from 1 (low) to 5 (high) First Number = Total Return; Second Number = Consistent Return; Third Number = Preservation; Fourth Number = Expense