- 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

Elementa to Move onto ISEC Platform

Hedge fund manager Marcus Wahlberg has decided to outsource the fund management function of his long/short equity strategy, Elementa, to ISEC Services, consolidating administrative,...

Announcing the Winners of the 2025 Nordic Hedge Award

HedgeNordic is delighted to announce the winners at the 2025 Nordic Hedge Award. We are honoured and humbled to bring together the Nordic hedge...

Build Your Index

By Harold de Boer, Managing Director and Head of R&D at Transtrend: The SG CTA and SG Trend indices are nearing their 25th anniversary. While CTAs...

Sissener Bottles Its Best Ideas into New Equity Fund

Norwegian fund boutique Sissener has long been associated with its flagship hedge fund, built around a flexible mandate and multi-sector expertise. Seeking to capitalize...

CTA / Trend Following ETFs: Access, Implementation, and the Question of Completeness

By Jerry Parker, Founder and CEO of Chesapeake Capital: The growth of CTA and trend following ETFs has expanded access to systematic strategies, but it...

Alcur Elevates Flöstrand to CIO One Year After Joining

Stock-picking boutique Alcur Fonder has appointed Per Flöstrand as Chief Investment Officer, with the portfolio manager taking over the role from co-founder and long-time...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -