General Market Review
Global equity markets faced significantly harsher conditions in March, as escalating geopolitical turmoil most notably the continued U.S. Israel-Iran conflict triggered a broad risk-off shift across global assets. The S&P 500 fell approximately 5%, marking its worst month since 2022. Meanwhile, global indices also sold off sharply. Europe and Asia registered some of the steepest losses, reversing early year gains as investors weighed the economic implications of elevated oil prices and vulnerable trade routes.
Emerging markets experienced a particularly pronounced sell‑off, falling around 13%, partly due to their exposure to energy import reliance and geopolitical sensitivity.
The principal driver of market stress remained the effective closure of the Strait of Hormuz, which amplified fears of prolonged disruption to global energy flows and sustained cost pressures.
The U.S. macroeconomic picture was mixed in March. Labor market conditions weakened, with non-farm payrolls showing a loss of -92k jobs and unemployment rising to 4.4%.
Inflation remained steady: U.S. headline CPI held around 2.4% year‑on‑year, consistent with February readings and suggesting that broader price pressures had not yet incorporated the full effect of late‑March energy spikes.
Consumer sentiment and corporate activity were shaped heavily by rising energy costs and uncertainty regarding the duration of Middle East hostilities.
The Federal Reserve did not change policy in March, maintaining the federal funds target range at 3.50–3.75%. Market expectations for 2026 rate cuts declined throughout the month as energy‑driven inflation risks rose.
Yields on 10‑year U.S. Treasuries rose by 38 basis points, from 3.94% to 4,32%, while 10‑year German Bund yields rose by 36 basis points, from 2.64% to 3,0.
The MSCI World Index fell by -6.4% in USD terms, and the MSCI Europe Index fell by -7.7% in EUR terms.
Energy and Transportation
Brent crude prices surged sharply in March, marking the strongest monthly increase in decades as the United States and Israel engaged in a multi‑week conflict with Iran. In response, Iran closed the Strait of Hormuz, pushing Brent crude from USD 72.50 to USD 118.35 per barrel by the end of the month. Retaliatory actions by Iran resulted in damage to more than 70 energy facilities across the Gulf region. Approximately 17% of Qatar’s LNG capacity has been destroyed, and rebuilding the damaged infrastructure is expected to take between three and five years.
Although Saudi Arabia managed to swiftly mitigate the impact of the strait’s closure by redirecting over two‑thirds of its oil exports through a pipeline to the Red Sea, the disruption still caused a significant shortfall. According to Vortexa, global oil arrivals fell by 15 million barrels per day compared with the same period last year. The steep rise in energy prices has forced several energy‑import‑dependent economies to adopt fuel‑saving measures, with demand destruction occurring far more rapidly in Asia than in Europe or the United States. Against this backdrop, the Stoxx 600 Oil & Gas Index recorded a gain of +14.75% (EUR‑denominated) by month‑end.
In contrast, the transportation sector weakened, with the Dow Jones Transportation Average declining by -5.4% in March. Airlines were particularly hard hit, as jet fuel prices, one of their main cost drivers, rose sharply, causing the US Global Jets Index to underperform markedly and drop -13.5% over the month. Despite elevated freight rates, especially in the tanker market, shipping stocks also declined. The Russell 2000 Marine Transportation Index fell by -3.27%.
Due to ongoing disruptions in the Strait of Hormuz and shifting global trade patterns, VLCC charter rates remained at exceptionally high levels, reaching over $ 175k per day at month‑end. In the dry bulk market, Capesize rates stayed relatively stable at around $ 23k per day. In container shipping, the Shanghai Containerized Freight Index (SCFI) rose by +37% in March and stands +35% higher year‑on‑year. Nevertheless, container liner operators continue to face higher bunker fuel costs and rising insurance premiums. As a result, most container shipping stocks ended the month in negative territory.
Fund Performance
The fund delivered positive returns in March across both its USD‑ and EUR‑denominated share classes. In total, the long book contributed +0.6% (USD den.), while the short book added +0.2% (USD den.). The euro depreciated by 3% against the USD, offsetting part of the gains in the euro‑denominated positions. For the USD‑denominated share classes, the currency impact amounted to approximately –1.0%.
Within the Energy segment, the Exploration & Production (E&P) long book generated a gain of +5.0%, whereas the E&P short book detracted -4.4%. Both the long and short books in energy services posted gains of +1.65% and +0.15%, respectively. The long book within the renewable energy segment added +1.35%, while short positions in nuclear energy stocks contributed an additional +1.37%.
The transportation segments weighed on performance. In shipping, both the long and short books generated negative returns of -0.7% and -0.3%, respectively. Long positions across dry bulk, crude/product tankers, offshore support, and container liners returned -0.25%, -0.3%, +0.05%, and -0.1%. Short positions in the container, car carrier, and LPG segments contributed +0.1%, -0.3%, and -0.1%, respectively. In other transportation segments, long positions declined by -1.7%, while short positions in freight services and other transportation names added +0.9% and +2.3%, respectively. In aviation, long positions detracted -3.0%, whereas short positions contributed +0.25%.
Throughout the month, long positions in the crude and product tanker segments were reduced, and new short positions were initiated in the crude, car carrier, and LPG segments. Given that the oil price risk premium is expected to remain elevated for an extended period, even once a peace agreement in the Middle East is reached, demand destruction in transportation, particularly within shipping, may lead to unfavorable supply‑demand dynamics. The fund now holds a net short exposure in the shipping segment.
For more information, you can find our latest Factsheet – March 2026.
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 mentioned financial instruments / investment strategy / securities services 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 basic information sheet (PRIIPs) and the securities prospectus for free: https://seahawk-investments.com/fonds/. The securities prospectus is provided to you in English and the basic information sheet 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 are not permitted. Seahawk Investments GmbH is authorized to provide financial portfolio management, investment advisory services, as well as investment mediation and contract brokering in accordance with Section 15 Paragraph 1 in conjunction with Section 2 Paragraph 2 Nos. 3, 4, 5, and 9 of the WpIG (Securities Institutions Act) and is subject to supervision by the Federal Financial Supervisory Authority (BaFin). Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) Marie-Curie-Straße 24-28 D-60439 Frankfurt am Main. Editor: Seahawk Investments GmbH, Bettinastraße 62, 60325 Frankfurt am Main.
Foreign Exchange Fluctuations may have a negative impact on performance results.