The Svelland Global Trading Fund returned an estimated 0.51% in June, bringing its year-to-date return to 9.4%.
The long/ short equity and commodities fund targets an annual net return of at least 15% with low correlation to equity and commodity benchmarks. It uses commodity futures, freight derivatives and commodity-related equities to express its asymmetric risk positions.
The Svelland fund's typical holding period is one to nine months as it seeks to add alpha through deep fundamental research and the team's proven commodities risk-taking experience.
PNL in oil, tankers, the energy transition and LPG
In the firm's June letter to investors, which was obtained by Hedge Fund Alpha, Henrik Seland said they made profit and loss in oil, tankers, energy-transition holdings and liquified petroleum gas. On the other hand, the Svelland fund lost PNL in metals, liquefied natural gas and index hedges.
Seland noted that June was marked by significant volatility in many of the markets in which they trade. For example, he said the May rallies in copper and aluminum ended up being too much too soon. As a result, June brought a sizable extended correction that actually started in late May with "a flurry of stop-outs in the market."
