General Market Review
In June 2026, U.S. equity markets paused after two consecutive months of strong gains, with investors adopting a more cautious stance following the sharp rally experienced during April and May. While market sentiment remained broadly constructive, heightened volatility within the technology sector and growing uncertainty surrounding the outlook for interest rates moderated overall performance. Geopolitical developments remained an important driver of market sentiment. The ceasefire between the United States and Iran was extended during June, contributing to a significant decline in oil prices and reducing concerns over potential disruptions to global energy supplies. Brent crude prices fell sharply during the month, helping to alleviate inflation pressures and supporting the broader economic outlook. Investor enthusiasm surrounding artificial intelligence remained a key market theme, although leadership within the technology sector became more selective. Semiconductor companies continued to benefit from expectations of sustained AI-related investment, while some large-cap technology firms experienced profit-taking as investors reassessed the near-term returns from substantial AI infrastructure spending.
Economic data released during June suggested that the U.S. economy continued to expand, although signs of moderation in labor-market momentum emerged. Non-farm payrolls increased by 57k, below market expectations and prior months’ gains, while the unemployment rate edged down to 4.2%. The data pointed to a gradually cooling labor market rather than a significant deterioration in employment conditions.
Inflation remained elevated. Headline CPI increased from 3.8% to 4.2%, while measures of underlying inflation also remained above the Federal Reserve’s target, reinforcing expectations that policymakers would maintain a cautious approach toward monetary easing.
In fixed-income markets, government bond yields were mixed. While shorter-dated Treasury yields moved higher as investors adjusted expectations for future monetary policy, 10 year US treasuries remained nearly unchanged with a yield of 4.46% at month end, while 10 year German treasury yield decreased further by 8 bps to 2.86% at month end.Global equity markets delivered mixed performance during June. The MSCI World Index declined by approximately -0.7% in U.S. dollar terms as weakness in U.S. mega-cap technology stocks offset gains in other regions and sectors, while the MSCI Europe Index gained by + 3,0% in Euro terms and thereby outperforming their U.S. counterpart., supported by improving economic sentiment, lower energy prices, and relatively attractive valuations.
Energy and Transportation
Brent crude began the month trading above USD 90/bbl, supported by concerns over supply disruptions linked to tensions involving Iran and the Strait of Hormuz. However, as the month progressed, markets increasingly priced in the prospect of a de-escalation of the conflict and a gradual normalization of oil flows from the region. When renewed diplomatic efforts between the United States and Iran improved market sentiment in the second half of the month. Expectations that shipping traffic through the Strait of Hormuz would recover and that Middle Eastern exports would gradually return to normal led to a sharp decline in the geopolitical risk premium embedded in crude prices. As a result, Brent crude fell from levels above USD 90/bbl earlier in the month to approximately USD 72/bbl by month-end.
Fundamental factors also weighed on prices. The International Energy Agency (IEA) reduced its demand outlook for 2026, citing weaker-than-expected economic activity and a decline in fuel consumption following the earlier surge in energy prices. At the same time, expectations for a recovery in Middle Eastern production and exports contributed to a more balanced supply outlook. Overall, June was characterized by a rapid unwinding of geopolitical risk premiums rather than a deterioration in underlying oil market fundamentals. While inventories remain relatively tight and longer-term supply risks persist, investors focused primarily on the improving outlook for global oil flows, resulting in one of the sharpest monthly declines in crude prices seen this year.
Against this backdrop, the STOXX Europe 600 Oil & Gas Index declined by 4.95% (EUR-denominated).
Performance within the transportation sector was mixed, particularly across shipping segments. VLCC (Very Large Crude Carrier) spot rates remained near record levels at approximately $ 150k per day at month-end, while MR product tanker rates eased to more moderate levels of around $ 33k per day. In the dry bulk market, Capesize earnings declined to approximately $ 29k per day. Meanwhile, VLGC (Very Large Gas Carrier) rates remained exceptionally strong, ending the month at roughly USD 135k per day.
Equity performance within the shipping sector reflected these diverging freight market trends. Crude tanker stocks outperformed, benefiting from sustained strength in tanker earnings, whereas product tanker names lagged as freight rates normalized. Dry bulk equities were broadly weaker across the sector. Despite continued strength in LPG freight markets, LPG shipping stocks declined amid concerns that a normalization of trading patterns could place downward pressure on freight rates going forward. In contrast, car carrier stocks continued to deliver strong performance. Overall, the Russell Marine Transportation Index declined by -1.7% during the month.
Other transportation segments, however, generated positive returns. The Dow Jones Transportation Average advanced 1.7% (USD-denominated), supported primarily by continued strength in the airline sector. Lower jet fuel prices provided a significant tailwind for airline operators, helping the U.S. Global Jets Index gain an additional +13.5% over the course of the month.
Fund Performance
The Fund delivered negative performance across both its USD- and EUR-denominated share classes during the period. On a USD basis, the long portfolio detracted -6.75%, while the short portfolio generated a positive contribution of +3.75%.
Within the Energy sector, the long book declined by -4.35%, partially offset by a +2.45% gain from the short book. Long positions in the Exploration & Production (E&P) segment contributed a loss of -1.9%, while corresponding short positions added +1.5%. In energy services, long holdings declined by -2.0%, with short positions contributing a positive +0.5%. Renewable energy investments detracted -0.6% on the long side, whereas short exposure to nuclear energy stocks added +0.4%.
Performance across transportation-related segments was modestly negative overall. In shipping, short positions contributed +0.1%, while long positions declined by -0.4%. Within the long portfolio, dry bulk shipping, crude/product tankers, and offshore support vessels contributed 0.0%, -0.5%, and +0.1%, respectively. On the short side, positions in crude tankers, LPG carriers, and car carriers contributed -0.5%, +0.8%, and -0.2%, respectively. Other transportation segments also weighed on performance. Long positions detracted -2.2%, while short positions contributed +0.6%. Notably, short positions in freight services added 0.2%. Within aviation, both long and short exposures generated positive returns, contributing +0.8% and +0.5%, respectively.
During the month, the Fund further increased its position in Scatec ASA, adding approximately 1% of NAV at an average purchase price of NOK 95.00 per share. Following this addition, Scatec represents a larger core holding in the portfolio and currently trades at an estimated EV/EBITDA multiple of 7.5x, compared with approximately 10.0x for its peer group.
Within the aviation segment, U.S.-based investment firm Castlelake has expressed interest in acquiring easyJet. Castlelake pursued the airline through a series of increasingly attractive proposals, which were initially rejected by easyJet’s Board on the grounds that they undervalued the company and took advantage of prevailing market conditions. After easyJet granted Castlelake limited access to due diligence information to facilitate further discussions, the Fund increased its position in the airline from approximately 1.7% to roughly 3.0% of NAV, acquiring additional shares at an average transaction price of 578 pence per share.
For more information, you can find our latest Factsheet – June 2026.
Seahawk Investments GmbH
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