Escalating trade tensions between the US and China (US raising tariffs on an additional $ 300 bn. of chinese imports and China raising tariffs on $ 75 bn. of US imports) coupled with the announcement of weak macro-economic data from China (July Industrial production growth of only 4.8% YoY) and Germany (2nd Quarter GDP growth of -0,1%) led to a broad market sell-off in August with cyclical stocks leading the market decline. Brent oil has declined further from $ 65 / barrel to $ 60.4 / barrel whereas the Henry-Hub Gas price has increased slightly from an ultra-low level of 2.233 / mnBTU to 2.285 / mnBTU.
The fund price has shown resilience as the short postions in the aviation and energy segment have nearly been able to compensate for the losses. Moreover, positions in the two tanker stocks Frontline and Euronav were built up during the sell-off as IMO 2020 may lead to short tanker supply during 2H19.
More detailed fund information can be found in the attached Factsheet August 2019.
Seahawk Investments GmbH