AAM Absolute Return Fund roars ahead gaining 57% in 2015

Stockholm (HedgeNordic) –  AAM Absolute Return Fund, the long/short equity hedge fund managed by Norwegian Oslo Asset Management, finished the year in very strong fashion adding +13.4 percent in November and another +13.8 percent in December. This brings year-to-date numbers to +57 percent.

The AAM Absolute Return Fund seeks to exploit fundamental inefficiencies in publicly traded securities within Energy and Natural Resources.

According to the fund´s November newsletter, a significant short position in the energy infrastructure sector in the U.S. was mentioned as the main performance driver.

”We maintain a significant short position in the energy infrastructure sector in the US. As the business fundamentals for this sector continue to deteriorate, investors start focusing on the astronomic valuation levels of these companies arising from the inflated, and in our view non-sustainable, dividend levels. With heavy debt burden, P/E of 40-50, P/B of 4-5 and significant negative earnings revisions, we believe that the probability of a collapse is significant. W e still see 50-80% downside for many of these companies, if they were to be valued at the same metrics as the companies in our long portfolio”, the monthly commentary reads.

Not all funds have reported final numbers yet for December, but with all likelihood  AAM Absolute Return Fund will end up to be strongest net performer within the universe of Nordic hedge funds, having overtaken Accendo who held that position throughout the year and were banned to second place by AAMs strong run in the last two trading months of 2015. Third strongest performer is Origo Quest 1. In 2014, it was Rhenman HealthcareL/S who was best performing Nordic hedge funds having gained 42%. In 2015,  Rhenman HealthcareL/S is up by 20%.

Picture: (c) studiostoks—shutterstock.com


About Author

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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