- Advertisement -
- Advertisement -

Related

Storm Bond Fund Steady Through Cool May

Industry Report

- Advertisement -

Stockholm (HedgeNordic) Storm Bond Fund, the Norwegian High Yield Fixed income fund managed by Storm Capital Management Ltd. with a primordial focus on Nordic bond markets, continues its strong winning streak despite a muted (by its recent standards) +0.6% return in May, turning in +10.7% returns YTD. This was by comparison with +0.59% returns in the NHX Nordic Fixed Income universe for May so far (+4.58% YTD).

The fund, which has NOK 810 million in AuM, seeks to hold 30 to 40 of the best risk-adjusted high yield bonds across the Nordics at all times, with an investment process based on a top-down market screening of the universe and a bottom-up analysis of individual companies. Its management team is the largest investor in the fund.

In a comment to the month’s performance, Storm Bond Fund Chief Investment Officer Morten E. Astrup explained that due to a large amount of new issues entering the Nordic High Yield market, credit spreads in the secondary market fell relatively flat from the end of April to the end of May, although Q1 2017 returns were largely in line with expectations. The fund’s position in Gulfmark also suffered due to the U.S. Oil Service Index being down roughly -10% in May because of lower trending oil prices. The fund’s objective, however, is to deliver a 10-12% annual return and is therefore currently on target.

The Storm Bond Fund also added Euronav bond issue to its portfolio. Euronav is the world’s largest publicly traded crude tanker company with a market cap of USD 1.2 billion, a strong balance sheet and good liquidity, which the fund considers sustainable during a prolonged period with lower tanker rates. Conversely, the fund sold its position in American Shipping Company above par value.

Mr Astrup observes and anticipates further good value and further yield compression in the Nordic High Yield market going forward due to “increasing inflows in Nordic High Yield funds, still historical high spreads compared to international High Yield markets and a significant share of floating rate notes providing investors with protection from an environment with increasing interest rates.”

Picture: (c) seewhatmitchsee—shutterstock.com

 

 

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

Beyond Renewables: Coeli Fund Taps Into the Broader Electrification Race

Earlier this year, portfolio managers Vidar Kalvoy and Joel Etzler renamed their fund from Coeli Renewable Opportunities to Coeli Energy Opportunities – a move...

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...

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.