Stockholm (HedgeNordic) – Former head of Danske Capital Niels-Ulrik Mousten (pictured) is joining forces with Carsten Bach, a former investment manager at Danske Bank, to launch Caba Capital, a new hedge fund expected to attract DKK 100 million in initial investments from institutional and private investors, the Danish financial daily Børsen has reported.
“We expect a high return of 8% with low volatility, and it will be an asset class that is not correlated with equities and bonds. At Danske we delivered higher returns than this, but at present I will not promise more than what I am convinced I can keep,” Carsten Bach told Børsen.
The pair expect total AUM to reach DKK 3 billion in the long run. Caba’s fixed fee will be 1%, with the performance fee at 15%, a premium described by Niels-Ulrik Mousten as “unassuming”.
Caba Capital will invest in the yield spread between Danish and Swedish mortgage and government bonds, and the hedge fund will be managed by Nykredit’s Administration portfolio. Nykredit Realkredit A/S is Denmark’s biggest mortgage lender. The minimum investment in Caba Capital will be DKK 750,000.
Picture source: https://twitter.com/numousten