- Advertisement -
- Advertisement -

Related

Bounce for Carnegie WorldWide L/S in March

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – Copenhagen’s Carnegie Asset Management reported an increase of 1.2% for its Carnegie WorldWide Long/Short Fund in March, a welcome bounce following declines of -2.1% in February and -2.6% in January. Nordic Hedge Index Composite (NHX) is indicating unchanged performance figures for March. At month’s end the fund had EUR 74.7 million in AUM. The fund, whose objective is to generate competitive risk adjusted returns, also reported a gross exposure (beta adjusted) increase to 92.7% and a net exposure (beta adjusted) decrease to 15.2% of its portfolio.

Positive contributions during March were broadly based, with ten stocks adding 20 basis points or more. The two investments with the strongest contributions were Dollar General, purchased by Carnegie L/S during the market slump last month, at 37bps, and TSMC at 27bps. Dollar General’s performance in particular stood out with a very strong quarter and an 11% jump in its shares on the day. Detractors from the Fund’s performance in March were among its short positions with IBM, which cost it 22bps. The strong IBM stock trade in the first quarter, following the trend of the past four years, is related to the decline in the dollar and investor expectations of a turnaround.

David Rindegren (pictured), the Fund’s portfolio manager, states in Carnegie L/S’s March report that hedge funds have been compelled to deliver and cover short positions, as structurally challenged companies have outperformed the market since February and with net exposure levels low but leverage high. This is expected to continue for some time. The Fund therefore only added Intel as a new short in late March, due to weakening fundamentals and questions relating to how it accounts for its outputs.

Despite weaker market fundamentals, valuations have returned to their levels at the start of the year because of the commodity-driven market rebound that began in mid-February, due in part to the strength of U.S. and emerging markets driven by a weakening US dollar. With the S&P500 Index trading at a P/E multiple of 17 and investors now expecting first quarter earnings to be down 8%, there is no clear signal of investor sentiment, with the VIX Index dropping to 14 again despite the abundance of Grey Swans. This indicates market momentum has begun to wane again after the short squeeze had shown signs of tapering off.

These combined factors inclines Carnegie L/S to continue to stay with a low net exposure, and only gradually increase gross exposure from current low levels.

 

 

 

 

 

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

Three Danish Hedge Funds Recognized by the Hedge Fund Journal

Three Danish hedge funds have been recognized at the 2025 Hedge Fund Journal CTA and Discretionary Trader Awards. Two funds managed by Danske Bank...

Private Equity in Transition: Challenges and Opportunities

Private equity has matured into a mainstream – if not cornerstone – allocation for institutional investors. Following years of record fundraising and valuation expansion,...

Formue Highlights Private Credit’s Role in New Economic Era

Nordic wealth manager Formue has long prided itself on delivering institutional-grade investment solutions to high-net-worth individuals. As global economic conditions shift, Formue sees an important role...

Chelonia Select Builds on Solid 2024

Stock-picking hedge fund Chelonia Select is off to a strong start in 2025 with an 8.3 percent gain through the end of May, building...

CABA Capital Expands the Flex Series

Danish fixed-income boutique CABA Capital has launched the third vintage of its leveraged, closed-end fixed income strategy: CABA Flex3. The fund aims to deliver...

Aegon AM Launches Capital Call Finance Fund

Aegon Asset Management has launched the Aegon Capital Call Finance Fund, providing institutional investors with access to the capital call finance market – a...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.