Key Takeaways
- • Gersemi Shipping Fund, the shipping-focused long/short equity fund run by Joakim Hannisdahl, gained 7.9 percent in October, its second-strongest monthly performance since its mid-2023 launch.
- • Hannisdahl attributes the rebound to a deliberate shift from medium- and long-term positions toward short-term trading, which he says has been a drag on performance since the 2024 US presidential elections.
- • The fund reports roughly 20 percent gained over about 12 business days from an oil tanker stock trade that bought the late-September dip and sold at the mid-October peak.
- • A net-neutral dry bulk freight forward agreement (FFA) profited from falling Capesize spot rates after their September peak.
- • Despite gaining 10.4 percent across September and October, the fund remains down 9.6 percent year to date through October, with a cumulative return of 18.5 percent since launch.
Summary
After a challenging first eight months of the year, Gersemi Shipping Fund, the shipping-focused long/short equity vehicle managed by Joakim Hannisdahl, staged a strong recovery from late summer, gaining 7.9 percent in October alone. According to a letter to investors cited by HedgeNordic, the month was the fund's second-strongest since its launch in mid-2023. Hannisdahl attributes the rebound to a shift toward shorter-term trading, which allows the fund to capitalize on volatility in shipping markets while reducing exposure to more uncertain medium- and long-term positions.
Hannisdahl said medium- to long-term investing has become increasingly challenging since the US presidential elections in 2024, creating a drag on performance year to date. He said the manager had scaled back market exposure and focused more on short-term trading, and that the October gains reflected this reallocation as well as the value added by the fund's proprietary models in a favourable trading environment. He described volatility as driven by fundamentals on the ground rather than news headlines and social media, which he said played to the fund's modelling, information-flow and experience advantages.
Oil tanker stocks were among the fund's most profitable positions in October. The fund bought shares after a late-September decline, sold everything at the mid-October peak for a return of approximately 20 percent over around 12 business days, and then re-established long positions a few days later when tanker stocks traded about 13 percent below their recent peak. Positions were exited in late October and early November.
The fund also locked in significant gains from a net-neutral dry bulk freight forward agreement (FFA) trade. FFAs are financial contracts that let investors take positions on future freight rates without trading physical shipping capacity. The fund profited from falling Capesize freight rates after they peaked in September, with Hannisdahl saying the trade monetized falling Cape spot rates while taking on limited exposure risk.
Despite gaining 10.4 percent across September and October, Gersemi Shipping Fund remains down 9.6 percent for the year through the end of October. Since its mid-2023 launch, the fund has generated a cumulative return of 18.5 percent.
Hannisdahl said medium- to long-term investing has become increasingly challenging since the US presidential elections in 2024, creating a drag on performance year to date. He said the manager had scaled back market exposure and focused more on short-term trading, and that the October gains reflected this reallocation as well as the value added by the fund's proprietary models in a favourable trading environment. He described volatility as driven by fundamentals on the ground rather than news headlines and social media, which he said played to the fund's modelling, information-flow and experience advantages.
Oil tanker stocks were among the fund's most profitable positions in October. The fund bought shares after a late-September decline, sold everything at the mid-October peak for a return of approximately 20 percent over around 12 business days, and then re-established long positions a few days later when tanker stocks traded about 13 percent below their recent peak. Positions were exited in late October and early November.
The fund also locked in significant gains from a net-neutral dry bulk freight forward agreement (FFA) trade. FFAs are financial contracts that let investors take positions on future freight rates without trading physical shipping capacity. The fund profited from falling Capesize freight rates after they peaked in September, with Hannisdahl saying the trade monetized falling Cape spot rates while taking on limited exposure risk.
Despite gaining 10.4 percent across September and October, Gersemi Shipping Fund remains down 9.6 percent for the year through the end of October. Since its mid-2023 launch, the fund has generated a cumulative return of 18.5 percent.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.