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Elementa Builds on Momentum from Q2

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Stockholm (HedgeNordic) – Elementa, the Swedish long/short equity fund managed by Marcus Wahlberg, added 1.6% in July building on a 2.5% gain from the second quarter.

According to the fund´s quarterly investment letter, positive contributions during the second quarter came from long positions in BB Tools, a position that has now been reduced significantly. Another strong contribution was a long position in the Norwegian mobile phone solutions company Link Mobility, a company that Wahlberg sees as facing strong growth tailwinds in the coming years.

“The company is growing extremely fast through a combination of organic growth and acquisitions – 124% in 2015 and an estimated growth for 2016 of 51%”, Wahlberg writes.

In the short book, the fund took profit in Swedish kitchen solutions provider Nobia, following a steep decline in the price of the stock as a result of the Brexit vote. Wahlberg sees fundamentals for the company weakening given a significant exposure to the UK economy but at the same time judge the downside potential to be limited given the correction in the company´s valuation.

Going into the third quarter, Elementa´s gross exposure was 83 per cent and net exposure was 20 per cent.

The fund has added 5.7% in 2016 as of July and show gains of 19.7% since inception in March 2015.

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Jonathan Furelid
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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