Stockholm (HedgeNordic) – Adrigo Hedge adds 1.03% in October, raising ist year-to-date performance to 4,8%. The holdings which contributed the most to performance were Volvo (trucks), Securitas (security/guarding) and Nokia (telecom equipment). Amongst the Fund’s smaller holdings the manager saw good percentage gains in Tomra (recycling/sorting) and UPM (paper). The strong performance in Nordic equities during October OMX N40, climbing by 5.1% , seem to have not given the portfolio managers opportunities on the short side as “the Fund’s short positions impacted performance negatively”, Adrigo writes.
In the monthly letter for October, Adrigo gives an outlook: „The Nordic companies’ reporting period is now behind us, meaning that the market’s focus is likely to shift to macro economic statements from the large economies, ie China, the US and Europe. Focus is likely to remain high on statements made by Heads of Central banks, ie Yellen, Draghi and, in Sweden, Ingves. Any new policies or actions announced from these banks are likely to lead to significant impact on equity markets. The continued weakness in China is a big threat, and direct and indirect effects from a further weakening in China would be significant. We have invested in Sandvik (industrial) as we have good hope that the new top management, ie Head of Board of Directors, Johan Molin, and CEO Björn Rosengren, will put in place numerous programmes for a long term change towards sharply higher margins. A small first sign in the right direction was the sale of Mining Systems. We remain optimistic and continue to see good opportunities to achieve strong risk adjusted returns based on our stock picking strategy.“
Adrigo Hedge is a long / short equity fund with a Nordic bias driven by fundamental research and is co maanged by Göran Tornée and Håkan Filipson. The portfolio is fairly concentrated, with both the long and short book each making up 15-15 positions.
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