General Market Review 

Global equity market dropped during the month of April with broad based weakness across most regions and sectors. Concerns over persistent inflation have led to a pushback of both the global bond and equity markets. On the other hand, the US economy has shown further resilience as both the services and manufacturing PMI (Purchasing Manager Indices) came in with a reading of 50.3 and 51.4 for the month of March. Moreover, the Euro area economy gave further signs of improvement. The Eurozone Flash-Composite PMI rose to 51.4 in the month of April.

Longer term interest rates have moved up again. The US 10-year treasury yield has increased from 4.2% to 4.7%, while the German 10-year Bund has climbed from 2.3% to 2.6%.

In the US, the consumer price index for the month of March came in at +3.4% vs. 3.2% (headline) and +3.7% (core) vs. 3.8% in the previous month.

US economic data was resilient. Non-farm payrolls and private payrolls increased by 303k and 232k for the month of March versus a previous reading of 275k and 223k. Durable goods orders increased by +2.6% during the month of March, whereas capital goods orders (ex-defense) have increased by +0.2%, respectively.

In Europe, inflation readings were nearly unchanged. The Euro-Area Consumer Price Index came in at 2.4% (headline) and 2.9% (core) for the month of March which was nearly unchanged vs. the prior month.

The MSCI World Index fell by -3.7% (USD den.) and the MSCI Europe Index came down by -0.9% (EUR den.).

Energy and Transportation

An increase in tensions between Iran and Israel has led to a sharp increase in oil prices to more than $ 90 per barrel of Brent oil until the middle of the month. Thereafter, the oil price fell back to the levels at the beginning of the month. Market participants have expected that diplomatic efforts would restore calm in the Middle East. Over the entire month of April, the price of Brent Oil has increased only slightly from $ 87.5 per barrel to $ 87.8.

Low crude oil inventories have left the oil market tight. Moreover, the International Energy Agency has projected demand to increase by a solid 1.2m barrels per day in 2024. The Stoxx 600 Oil and Gas Index (EURO denom.) was able to gain by +4.9 % in April.

On the other hand, the interest sensitive renewable energy sector was unable to decouple from the overall negative market trend. The S&P Global Clean Energy Sector Index fell by -5.0% in April. With that the renewable energy segment is now down by -15.0% year-to-date.

Transportation segments have shown a mixed performance. The DJ Transportation Average Index fell by -7.0% as trucking logistics companies in the US have warned that challenging conditions in the freight industry including weaker prices were eroding margins. Despite United Airlines upbeat outlook passenger demand outlook US airlines profits may continue to be pressured as fares are expected to weaken and labor costs rise. The US Global Jets Index dropped by -3.1%.

In contrast to the other transportation segments the Russell 2000 Marine Transportation Index has increased by +1.0%. In the dry bulk segment smaller vessel types have benefited from increased freight rates. Supramax rates have increased from $ 14k/day to $16k/day whereas capesize-rates have softened further from $20k/day to $17,5k/day at month end. Container freight rates have reversed its downward trend increasing by +12% in the month of April. The SCFI (Shanghai Containerized Freight Index) is still up by +94% year-on-year. Crude oil tanker (VLCC – Very Large Crude Carrier) rates have remained flat throughout the month averaging around 35k/day at month end, whereas product tanker rates (MR earnings) have softened from $38k/day to $ 31k/day. VLGC (Very Large Gas Carrier) rates have increased from $ 50k/day to $54k/day at month-end.

Fund Performance

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

Within transportation the shipping long book had an overall positive contribution of 1.9%. Long positions in the dry bulk, crude/product/chemical as well as offshore-supply segment contributed a positive +1,0%, +0.8% and +0.1% respectively. The fund was particularly able to benefit from its long exposure in the smaller vessel segments of the dry-bulk sector (Supramax), On the other hand the short shipping book in the container and LPG segment had a negative contribution of -0.2%.

In the area of freight services, the short book had a positive contribution of +0.2% whereas short positions in other transportation segments had a positive contribution of +0.8%. The aviation long book was flat in the month.

Within the energy segment long positions in the oil & gas long book had a positive contribution of +0.3% whereas short positions in the segment had a negative contribution of -1.2%. A small long exposure in the renewable energy segment had a marginally negative contribution of less than -0.1%.

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

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

Seahawk Investments GmbH

This document is a customer information (“CI”) within the meaning of the German Securities Trading Act (WpHG), the “CI” is directed exclusively to professional clients within the meaning of section 67 WpHG (natural and juristic persons) with habitual residence or registered office in Germany and is used solely for informational purposes. This “CI” cannot replace an individual investment- and investor-friendly advice and does not justify a contract or any other obligation. Furthermore, the contents do not constitute investment advice, an individual investment recommendation, an invitation to subscribe for securities or a declaration of intent, or a request to conclude a contract for a transaction in financial instruments. Also, it was not written with the intention of providing legal or tax advice. The tax treatment of transactions depends on the personal circumstances of the respective customer and may be subject to future changes. The individual circumstances of the recipient (including the economic and financial situation) were not taken into account in the preparation of the “CI”. Past performance is not a reliable indicator of future performance. Recommendations and forecasts are non-binding value judgments about future events and may therefore prove to be inaccurate with respect to the future development of a product. The listed information refers exclusively to the time of the creation of this “CI”, a guarantee for timeliness and continued correctness cannot be accepted. An investment in the mentioned financial instruments/investment strategy / financial service involves certain product-specific risks – e.g. Market or industry risks and risk in currency, default, liquidity, interest rate, and credit – and is not suitable for all investors. Therefore, potential prospects should make an investment decision only after a detailed investment advisory session by a registered investment advisor and after consulting all available sources of information. For further information, please refer to the “Key Investor Information” and the securities prospectus for free: The information will be made available to you in German. The above content reflects only the opinions of the author, a change of opinion is possible at any time, without it being published. The present “CI” is protected by copyright, any duplication and commercial use is not permitted. Date: 29.02.2024 Editor: Seahawk Investments GmbH, Feldbergstrasse 57, 61440 Oberursel acts as a tied agent (section 3 (2) German Wertpapierinstitutsgesetz (WpIG)) on behalf of, in the name of, for account and under the liability of the responsible legal entity BN & Partners Capital AG, Steinstrasse 33, 50374 Erftstadt. BN & Partners Capital AG has a corresponding license (section 15 WpIG) from the German Federal Financial Supervisory Authority (BaFin) for the provision of investment advice in accordance with section 2 (2) no. 4 WpIG and investment brokerage according to section 2 (2) no. 3 WpIG.

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