- Advertisement -
- Advertisement -

Related

Nordic Omega with one of the worst month since inception

Latest Report

This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

Copenhagen (HedgeNordic.com) – Nordic Omega in September suffered one of its largest drawdowns since inception, and this was the first month since 2008 where our stock selection alpha versus Nordic equity indices was negative, writes Nordic Omega in their September report and goes on:
– Three of our largest long positions had outsized falls for no other apparent reason than blind risk aversion and forced selling among other investors. We have stress tested our portfolio and our investment cases, and remain firmly convinced that there is extraordinary upside in our holdings. Our view is that this extremely low level of valuation of our companies’ assets and future cash flows must increase. The question is when; when do scared investors start behaving rationally and invest in the yield and returns on offer in equities rather than return-free risk like Treasuries?

We find a number of strong signals for a bottoming out currently: extreme intrastock correlations, extremely high earnings yield gap, very low price/book and cyclically adjusted earnings multiples, VIX and put/call ratio, accumulated equity mutual fund outflows approaching exhaustion levels, very pessimistic readings in fund manager and advisors’ sentiment surveys, and a number of composite “panic” indicators flashing red, writes Nordic Omega.

Picture: (c) shutterstock alex saberi

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

HedgeNordic Editorial Team
HedgeNordic Editorial Team
This article was written, or published, by a member of the HedgeNordic editorial team.

Latest Articles

AllianzGI’s Impact Private Credit Strategy: Financing Change Without Compromise

Private credit has matured into an established asset class and is now evolving beyond traditional financing, offering opportunities to contribute to positive change. As...

ESG Remains Part of the “Credit Story” in Private Credit

ESG integration remains a standard component of private credit investing, particularly in Europe and among Nordic institutional allocators, but its momentum has slowed. Conversations...

From PDF to Platform: Why Governance Needs a System, Not a Folder

By Sofia Beckman – Co-founder, North House: “We manage billions with real-time systems,” one COO told me. “But our governance still lives in PDFs.”...

CABA Flex: End of Lifespan, Promises Fulfilled

About three years ago, Copenhagen-based fixed-income boutique CABA Capital was preparing to launch what would later become the first fund in its Flex series:...

Nordic Hedge Funds Maintain Momentum Towards Year-End

Nordic hedge funds are heading toward year-end with strong momentum, advancing 0.8 percent in October to extend their winning streak that began in May....

Gradually, Then Suddenly: Proxy P Extends Rebound

As Ernest Hemingway once observed, change happens “gradually, then suddenly.” For the team at renewables-focused asset manager Proxy P, a period of weak performance...

Allocator Interviews

In-Depth: High Yield

- Advertisement -

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.