- Advertisement -
- Advertisement -

Related

Sweden holds highest hedge fund allocations in Europe

Report: Alternative Fixed Income

- Advertisement -

Stockholm (HedgeNordic) – Sweden-based investors have the highest mean current allocation to hedge funds of any European country, with institutions committing 13.4% of their AUM to the industry, above the Europe-based average of 10.3%. This according to a recently published report on the European hedge funds industry by Preqin.

According to the report, Sweden has the third largest hedge fund industry in Europe by AUM ($40bn). The industry is mostly concentrated in Stockholm, which is home to 85% of hedge fund managers and 88% of institutional investors in hedge funds in the country. Sweden has the highest investor participation rate of the 10 featured countries in the report, with 41% of institutional investors tracked by Preqin currently investing in hedge funds.

Preqin data suggests that there are 49 Sweden-based institutional investors active in hedge funds and that the number of active Sweden-based hedge fund managers amount to 41. This could be put in contrast with the more than 50 Swedish hedge fund managers listed in HedgeNordic’s Nordic Hedge Index (NHX).

Among other Nordic countries, only Norway is highlighted in the report. Preqin states that there are 10 active Norwegian hedge fund managers (equal to what is listed in the NHX) holding assets of $2,9bn and that there are 14 active hedge fund investors in the region.

Overall, the European hedge fund industry fell in terms of assets under management (AUM) in 2016, with net asset outflows continuing through Q1/2017, Preqin data reveals.

As of the end of 2015, hedge fund managers in the region held $674 billion in AUM; this declined to $657 billion a year later. At the same time, net investor outflows from Europe-based fund managers reached $35 billion, with a further $9 billion recorded in Q1/2017, according to Preqin.

However, performance among Europe hedge funds has shown signs of recovery from difficulties seen in late 2015 and early 2016. In the 12 months to the end of May 2017, funds in the region have made overall gains of 10.28%.

Other highlights from Preqin’s Hedge Funds in Europe Report:

Traditional single-manager commingled vehicles represent less than half (47%) of all hedge funds in Europe, with UCITS funds accounting for over a quarter (26%).

Of Europe-based investors, private sector pension funds account for the largest proportion (21%) of capital invested, with insurance companies committing a fifth of all capital.

The UK hedge fund industry is the largest in Europe, with $472 billion in AUM, 47% of the assets held by managers based in the region.

Switzerland is the second most prominent European market after the UK. There are 241 active hedge fund investors, 123 hedge fund managers and 55 fund of hedge fund managers based in the country.

Of the ten European countries featured in Preqin’s report, Spain-based hedge funds charge the lowest average performance fee (16.55%).

Over half (56%) of Europe-based UCITS funds are domiciled in Luxembourg.

 

Picture (c): Filipe-Matos-Frazao – shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

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

Latest Articles

Hafnium Navigates Early Stress Test Following March Launch

Timing a hedge fund launch is never easy and getting it right can be make-or-break for long-term success. French-Danish duo Alexis Dubois and Victor...

Helena Nieckels to Lead Institutional Push at Merged Indecap-PriorNilsson

Helena Nieckels, former Head of Nordics at Jupiter Asset Management, is joining Indecap and PriorNilsson Fonder to focus on institutional clients. The two fund...

Ex-Velliv PM Joins Lærernes Pension

After Danish pension provider Velliv dismissed its entire alternatives team earlier this year as part of a broader strategic shift towards passive strategies, its...

Bitcoin-Focused Anna Secures Full AIFM License

Anna Asset Management, which runs a momentum-driven strategy focused on Bitcoin futures, has been granted a full license as an alternative investment fund manager...

Bright Spots Emerge Amid Difficult March for Nordic Hedge Funds

Although March already feels like a distant memory amid the turbulence of April, Nordic hedge funds also faced a challenging month back then. All...

Mandatum Managed Futures Maintains Momentum

Mandatum Managed Futures Fund was named the “Best Nordic Managed Futures Fund” at the Nordic Hedge Award for the second year in a row,...

Allocator Interviews

In-Depth: Megatrends

Voices

Request for Proposal

- Advertisement -