- Advertisement -

Related

Time to risk short term performance for long term gains, says Taiga

- Advertisement -

Stockholm (www.HedgeFonder.nu) Norwegian managed Taiga Fund describes the third quarter as „brutal for the worlds financial markets, as well as for the Taiga fund“ in an investment letter. Since May the fund lost 12% of its value and shows a year to date loss of close to four per cent, MSCI European Small Cap Index in the same period gave up over 20%. Annulised compound return since the funds inception in May 2008 is at 17,51%, while the index is under water fort he same period by 3,8% per year.

At the beginning of August Taiga had a net equity exposure of 71%, the lowest level for the fund since May 2009. The manager says that the large cash position,  contributions from short positions and an overperperformance of long positions tot he general market helped cushion the impact from the sharp downturn.

While the fund may invest all over Europe, a strong Nordic focus is evident. Among the largest holdings in the funds long book the top three positions are held by Norwegian companies TGS Nopec Geophysical Comapany (13,97% of Nav), Oslo Bors (10,21%) and Bouvet (7,74%). Largest foreign holdings are Danish listed Bakkafrost (7,08%) and Swedens Duni (6,72%). An undisclosed German position accounts for 2,73% of holdings.

„We do not base any of our investment cases on assumptions of strong macroeconomic support. We rather try to find companies with qualities that enable profitable growth despite a somewhat challenging macro economic backdrop. A strong balance sheet is a prerequisite for any investment. We only accept a higher degree of operational leverage where we recognise good earnings visibility or believe revenue is supported by structural growth factors.

It is time to risk short-term performance for longer term gains. Equity exposure will most likely increase over the coming months as we add to our long-book, laying the foundations for strong future returns. With a concentrated small-cap portfolio, investors should expect a lumpy return profile that „can deviate substantially from general equity market returns.“ Taiga closes their general comments fort he quarter.

 

 

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

What if the Rules Changed?

The idea back in 2010 to launch a platform that would cover the Nordic hedge fund space came hand ind hand with another aspiration....

Month in Review: April 2026 Delivers a Strong Rebound

After the setback in March, Nordic hedge funds rebounded sharply in April, delivering one of their strongest months since 2020. The rebound came against...

Colosseum Hit by Extreme Single-Stock Moves in April

The performance of Colosseum Global Alpha has zig-zagged since the fund’s launch in the summer of 2025. Following two strong months after a more...

Accendo Closes Careium Chapter as Opportunity Builds in Nordic Small Caps

After several years as an active owner in Careium, Accendo Capital has now exited its investment in the Swedish telecare provider, bringing to a...

Origo Fonder Brings in Peter Eliasson as CEO

Wearing many hats is common within boutique asset managers and smaller investment organizations. At Swedish boutique Origo Fonder, founder, CEO and co-chief investment officer...

Three Years of Chasing the Right Tail

The hedge fund industry is highly heterogeneous, and Avanto Right Tail is one example of a strategy that adds to this diversity. Managed by...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -