Skandia Global Hedge shuts down

Skandia Fonder shuts down the Skandia Global Hedge product and transfer investors to the Skandia SMART Försiktig fund according to a press release.

Skandia Global Hedge is a multi-strategy fund using a combination of different investment strategies, all of which are independent of each other. These strategies are combined in the fund in order to allocate the fund’s total risk in an optimal manner. Skandia Global Hedge does not have any specific allocation requirements with regard to asset class or geographical area. The management of the fund is based on market neutrality i.e. the purpose is to generate a return on investments independent of movements in the respective financial markets.

In a comment to the decision, the fund management company says that the reason for closing the fund is that it has not lived up to performance expectations, the general interest for the fund has also been weak, the press release states.

The transfer to Skandia SMART Försiktig will take place on December 29, 2015. Up until that date, units in Skandia Global Hedge can be traded free of charge. The management fee in Skandia Global Hedge will be set to zero as of December 1, 2015.

Skandia Global Hedge is down 3.6% year-to-date  as of October which should be compared to the NHX Composite index that is up 3.3%. For the last three years, the fund has had a negative return of 1.4%. The sharpe ratio since inception is 0.3.

After Lancelot Global Select which reported last NAV in September, this is the second Swedish fund of hedge funds to shut down in 2015.

Picture: (c) nito—shutterstock.com

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Jonathan Furelid

Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

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