- Advertisement -
- Advertisement -

Related

Hedge Funds “Less Appealing”  for Ilmarinen

Latest Report

- Advertisement -

Stockholm (HedgeNordic) Growing prospects of a U.S. boom and lack of confidence in Europe’s political future is causing Ilmarinen, the Finnish pension fund with EUR 36 billion in AUM, to shun hedge funds and move its assets to the U.S., its CEO says.

According to Ilmarinen’s CEO, Timo Ritakaillo, outsourcing investment decisions to hedge funds is considerably less appealing than it once was, following years of ultra-low interest rates.

“It’s more and more important to look at the cost level of different investment instruments,” he said. “Specifically, I mean very expensive asset managers like hedge funds. We only have 2 percent of our total assets in hedge funds,” Ritakaillo told Bloomberg.

“In my view, the hedge fund industry probably will struggle next year again because their current cost structure is too high, from an investor’s point of view, given the low-return environment,” Ritakallio said.

In addition, the pension fund plans to adjust investments so it’s no longer underweight in the U.S. “We’re monitoring the geographic dynamic and are putting more focus on the U.S. market, and moving away from the euro zone,” Mr. Ritakallio said, citing a “very poor outlook for the whole economy, because this 1-1.5% growth rate will continue for a long time” in Europe. “It has a very negative impact.”

By contrast, Ritakallio expects the dollar to continue appreciating next year, as Trump’s policies spell both faster inflation and greater instability in the short term, Ritakallio said.

 

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

Mapping the Finnish Hedge Fund Landscape

Beyond operating as a media platform, HedgeNordic maintains an extensive database of Nordic hedge funds and related data. Although the data is not without...

Quirky Questions for Serge Houles (Tidan Capital)

Not every conversation in the hedge fund world needs to revolve around alpha, Sharpe ratios, or fund flows. In the ongoing Quirky Questions series,...

Quirky Questions for Mette Østerbye Vejen (Caba Capital)

Not every conversation in the hedge fund world needs to revolve around alpha, Sharpe ratios, or fund flows. In the ongoing Quirky Questions series,...

Solid First-Half Finish for Nordic Hedge Funds

Nordic hedge funds wrapped up the first half of the year on a solid note, delivering an average gain of 1.4 percent in June....

Brevan Howard Winds Down Volatility Fund Managed by Ville Helske

Brevan Howard Asset Management is winding down a volatility-focused hedge fund run by high-profile Finnish portfolio manager Ville Helske. Helske, formerly Head of Allocation...

Ymer to Launch Fourth CLO Fund with Proven Strategy and Structure

Building on the track record of three previous credit funds, Swedish alternative credit specialist Ymer SC AB is preparing to roll out its fourth...

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.