- Advertisement -
- Advertisement -

Related

April Turnaround For Alchemy

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – Alchemy Trading, the Norwegian Nordic Long/Short Equity Fund with a Scandinavian listed equities mandate, enjoyed returns of 3.4% in committed capital for the month of April, up from a -2.30% deficit in March and marking the reversal of a difficult start to 2017, leaving it -2.10% YTD. This is by comparison to a 0.57% rise for April so far on the Nordic Hedge Index (NHX) (+2.19% YTD)

Alchemy, which was incepted in 2012, targets double-digit returns with half the volatility budget and incorporates momentum-based strategies with prudent cash management and Kelly criterion inspired risk-management practices to maximize returns. Returns on capital deployed as per the Calmar ratio are emphasized, with the fund favouring flexibility and open-mindedness.

In a comment to the month’s performance, Alchemy Portfolio Manager Jarle Birkeland explained April’s improvement comes on the back of recovery in its top 3 positions in Ekornes (furniture), ABG (broker) and Strongpoint (IT). Tactically it increased its weighting in cyclical large caps, increasing its net exposure to 49%, partly due to YTD decline in Oslo breadth, at the expense of general improvement in large cap earnings. The fund is still maintaining a basket of fish-farming names benefitting from seasonality and oversold on weak sentiment. Going forward, it sees opportunity in large cap industrials on subdued inflation.

Alchemy, which maintains 36% liquidity, applies what is calls a “strong conviction, weakly held” composure to the best 10-15 ideas from a universe of the 300 most liquid securities in Scandinavia. Sizing is a function of risk-management through application of trading expectancy and Kelly Criterion portfolio sizing principles. Portfolio construction is a summation of the best individual risk-adjusted returns, rendering whether it has a variable long or short bias somewhat arbitrary. Due to a multiple time framework and the combination of short-term catalysts seeking out seasonality or behavioural patters, Alchemy is able to be selective as well as systematic about individual risk versus reward.

Alchemy was distinguished as the “Best Nordic Equity Hedge Fund 2015” at last years´Nordic Hedge Award.

 

 

 

 

 

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

Opportunities Lie Beneath Aggregate Credit Spreads

Credit spreads across the United States and Europe have tightened to historically low levels, leaving limited reward for simply holding long credit positions. This...

European Alternative Investments Conference 2025

More than 200 practitioners, academics and thought leaders met in Copenhagen for the second European Alternative Investments Conference, hosted by Finansforeningen, CFA Society Denmark...

Playing ‘Moneyball’ for Investors

Having managed the opportunistic hedge fund Pensum Global Opportunities under the Pensum Asset Management umbrella since 2022, Sector co-founder Peter Andersland has now established...

One Big Winner Lifts Accendo Into the Top Ten

When your portfolio holds six names, one big winner can move the needle in a major way. For Accendo Capital, September proved just that....

Slim Nordic Line-Up at HFM Awards

With Intelligence has revealed the shortlist for the HFM European Performance Awards 2025, featuring an unusually small number of Nordic hedge funds among this...

Record Gold, Rising Momentum

The NHX CTA Index gained in September 2025, supported by a broad-based trend environment. Most of the profits came from precious metals, as gold...

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.