Aurum’s quarterly review – Q1 2024

Sinéad Farmer | Investor Relations Team Leader
2 min read
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In summary…

Performance for Aurum’s commingled fund of hedge funds $US classes ranged from +1.5% to +3.8% in the first quarter of 2024. Multi-strategy and systematic strategies drove the bulk of positive performance. Markets were generally buoyant, despite some higher than anticipated inflation data releases and forestalled interest rate cuts. Enthusiasm for AI/tech stocks supported equities. There was some weakness in bonds across January and February.


Multi-strategy funds made a positive contribution to performance across the Aurum fund range in the first quarter. Quant, fixed income, and fundamental equity market neutral contributed positively across the quarter. Macro strategies detracted in February, but generated positive performance in January and March.


Despite positive performance in January and March, losses in February meant that allocations to macro funds detracted slightly from performance in Q1.

Losses were concentrated in February, following the release of FOMC minutes which indicated that rate cuts would not take place in March. Long fixed income positions in the US and Europe detracted as long-term yields rose, while net short Japanese fixed income also detracted. Short equity positioning in the US and Europe, across consumer discretionary, financials and IT sectors, and energy trading also detracted from performance.

Positive attribution came from rates trading and short Japanese fixed income positions in January and March. Long precious metals positions and long materials and short consumer discretionary positioning were also additive in March while metals trading delivered positive attribution across the quarter.


Systematic allocations generated positive attribution to the Aurum funds across the quarter. Most underlying funds experienced positive performance, but there was some significant dispersion. At the start of the year, it was encouraging to see that those funds which performed particularly well were those that experienced weaker performance in December. Some of the strongest performance was in March, where funds focused on machine learning and systematic futures strategies outperformed. Stat arb funds generally underperformed other systematic sub-strategies.

Event driven

Event driven funds contributed positively to performance during Q1 for those Aurum funds that have an allocation to the strategy.
Performance ranged from flat to marginally positive in January. Negative attribution primarily came from US political backlash against the acquisition of a US steel-maker. Performance improved in February where the closure of a deal in the e-invoicing sector was accretive to performance, as was broader risk-on sentiment in equity markets. This continued into March, when a number of notable deals closed, including those in the neuroscience and biopharmaceutical sectors. Opposition from President Biden to the acquisition of a US steel-maker detracted from performance. New deal flow picked up during the quarter, after the low levels seen at the end of 2023.

Equity long/short

For funds invested in the strategy, equity long/short allocations made strong positive contributions during Q1. In January, positive performance was driven by allocations to net long healthcare and financials sectors. Industrials and consumer discretionary sectors detracted. In February, gains came were driven by long positioning in tech and semi-conductor companies. In March, all underlying funds had positive returns, driven by long exposure to materials and financials sectors.

This Post represents the views of the author and their own economic research and analysis. These views do not necessarily reflect the views of Aurum Fund Management Ltd.. This Post does not constitute an offer to sell or a solicitation of an offer to buy or an endorsement of any interest in an Aurum Fund or any other fund, or an endorsement for any particular trade, trading strategy or market. This Post is directed at persons having professional experience in matters relating to investments in unregulated collective investment schemes, and should only be used by such persons or investment professionals. Hedge Funds may employ trading methods which risk substantial or complete loss of any amounts invested. The value of your investment and the income you get may go down as well as up. Any performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable indicator of future results. Returns may also increase or decrease as a result of currency fluctuations. An investment such as those described in this Post should be regarded as speculative and should not be used as a complete investment programme. This Post is for informational purposes only and not to be relied upon as investment, legal, tax, or financial advice. Whilst the information contained in this Post (including any expression of opinion or forecast) has been obtained from, or is based on, sources believed by Aurum to be reliable, it is not guaranteed as to its accuracy or completeness. This Post is current only at the date it was first published and may no longer be true or complete when viewed by the reader. This Post is provided without obligation on the part of Aurum and its associated companies and on the understanding that any persons who acting upon it or changes their investment position in reliance on it does so entirely at their own risk. In no event will Aurum or any of its associated companies be liable to any person for any direct, indirect, special or consequential damages arising out of any use or reliance on this Post, even if Aurum is expressly advised of the possibility or likelihood of such damages.

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