General Market Review
Global equity markets encountered a more difficult backdrop in February. U.S. indices came under pressure as political and geopolitical events unsettled investors. The S&P 500 slipped by 1%, while the tech‑focused NASDAQ fell by more than 3%. Sentiment worsened after a landmark U.S. Supreme Court decision declared President Trump’s key tariff initiative unlawful and as geopolitical tensions surged, with the United States entering a military confrontation with Iran toward the end of the month. Expectations of prolonged instability in the Middle East pushed oil prices higher throughout February.
On February 20, the Supreme Court upheld lower‑court rulings confirming that the power to impose broad tariffs lies with Congress rather than the executive branch. While the decision leaves the roughly USD 170 billion in existing tariff revenues untouched, it introduces considerable uncertainty into the future direction of U.S. trade policy. Many of the administration’s trade agreements—largely structured around either the threat or imposition of tariffs—may now require renegotiation. Markets responded cautiously as investors reassessed the outlook for U.S. domestic and foreign policy.
The fourth‑quarter earnings season was robust. Companies in the S&P 500 reported year‑on‑year earnings growth of 14.2%, the fifth consecutive quarter of double‑digit gains and well above earlier expectations of 8.3%. Meanwhile, the U.S. economy expanded at an annualized rate of 1.4% in Q4 2025, according to the latest estimates. Growth was partly constrained by reduced government spending following the 43‑day federal shutdown in October and November.
Labor market data for January showed an increase of 130,000 jobs, driven mainly by hiring in the healthcare and construction sectors. The Federal Reserve did not hold a policy meeting in February; attention now shifts to the upcoming FOMC gathering on March 17–18.
U.S. Core Consumer Price Index data came in lower than expected for January, with year‑on‑year inflation easing to 2.4% from 2.7% previously.
Yields on 10‑year U.S. Treasuries fell by 29 basis points, from 4.23% to 3.94%, while 10‑year German Bund yields declined by 19 basis points, from 2.83% to 2.64%.
The MSCI World Index rose by 0.73% in USD terms, and the MSCI Europe Index gained 4.05% in EUR terms.
Energy and Transportation
Brent crude prices edged slightly higher in February, rising from USD 70.69 to USD 72.50 per barrel by month‑end. Major oil‑producing nations were expected to resume output increases in April after a three‑month pause, with OPEC+ likely to approve a production hike of 137k barrels per day for the month. However, any actual increase is expected to be limited, as member countries were already producing below target levels in January.
Crude oil prices strengthened further during the final week of February as the United States and Iran prolonged their nuclear negotiations, adding uncertainty to the eventual outcome. In this environment, the Stoxx 600 Oil & Gas Index gained 9.8% (EUR‑denominated) by the end of the month.
The Dow Jones Transportation Average advanced 7.8% in February. The aviation segment underperformed, with the U.S. Global Jets Index rising only 2.2%. In contrast, shipping stocks showed substantial strength, led by the Russell 2000 Marine Transportation Index, which surged another 20.0% after already strong performance in the previous month.
Geopolitical tensions have significantly influenced tanker markets, pushing VLCC (Very Large Crude Carrier) rates up by an average of 200% in 2026. Military operations in Venezuela, followed by a major military buildup in the Middle East, contributed to the increase. According to Bloomberg, Iran’s crude exports from Kharg Island surged by 300% between February 15 and 20 compared with the previous month. Export disruptions may also raise demand for floating storage, which is already up 40% year‑on‑year according to Vortexa data. As a result, VLCC charter rates climbed to record highs of USD 200k per day at the end of the month. In the dry bulk market, Capesize rates remained range‑bound at approximately USD 24k per day. In sharp contrast to the strength in commodity shipping, the container freight market continued to weaken. The Shanghai Containerized Freight Index declined by 9% in February and is now down 12% year‑on‑year. Following the Supreme Court’s ruling against the use of IEEPA (International Emergency Economic Powers Act) tariffs, the Trump administration implemented 10% global levies, adding further pressure to container trade dynamics.
Fund Performance
The fund generated positive returns in February across both its USD‑ and EUR‑denominated share classes. Overall, the long book contributed +4%, while the short book detracted –0.6%. It was a strong month, with gains recorded in the oil and gas sector, energy services, and the shipping segment—particularly in crude tankers, dry bulk, and offshore support.
At month‑end, performance attribution showed that within the energy segment, long positions in oil and gas exploration and production, oil services, and renewable energy contributed +1.3%, +2.0%, and –1.1%, respectively. The strongest contributors within energy services were Technip Energies NV and TGS. Ahead of Technip’s quarterly earnings release on February 26, the fund increased its long position by 50% (approximately 3 percentage points of NAV) at a share price of EUR 33.03.
In contrast, the renewables segment underperformed. Vestas Wind Systems fell –15.2% during the month after quarterly earnings missed analysts’ expectations. Prior to the results announcement, the fund reduced its long position by roughly 17.5% (equivalent to 1 percentage point of NAV) at a price of DKK 194.8 per share. Short positions within the energy segment overall detracted –0.4%, with oil and gas shorts contributing –1.5% and nuclear‑related shorts adding +1.1%.
In the shipping segment, the long book delivered a positive return of +2.5%, while the short book detracted –0.5%. Long positions in dry bulk, crude/product tankers, and offshore support generated returns of +0.4%, +1.5%, and +0.6%, respectively. The fund also initiated a new short position in the car carrier segment. Short positions in container shipping and car carriers contributed –0.1% and –0.4%, respectively.
For more information, you can find our latest Factsheet – February 2026.
Seahawk Investments GmbH
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