Brummer Multi-Strategy Fund Up 1.7% in February, And 3.7% YTD On ‘AI-At-Risk’ Short Bets

The Multi Strategy fund from Brummer & Partners disclosed a 1.7% gain in February, raising the fund’s YTD performance to 3.7%.

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The fund employs three strategies – long/short equity, systematic macro, and systematic trend.

Market Commentary

AI-related concerns, specifically regarding the impact on the software industry, shook the markets in February. This event triggered a sector rotation, witnessing a sell-off in the software industry. Both the S&P 500 and the NASDAQ underperformed, with tech large caps weighing down on the indices.

Amazon announced a 30% increase in capex, peaking at US$200 billion in 2026; its stock plummeted 9%. Anthropic’s improved AI tools such as Claude Cowork and Claude Code hit the software industry, helping the fund managers’ decision to rotate into ‘AI-at-risk’ shorts.  Investors now fear the potential in disrupting even the biggest players and their operating models.