- Advertisement -

Related

Lynx “down but not out”

- Advertisement -

Stockholm (HedgeNordic) – In a recent article in Swedish business magazine Dagens Industri (DI), Svante Bergström (pictured), founder and CEO of Swedish systematic trend following hedge fund Lynx, was asked whether there is a risk that the fund will be closed by Brummer & Partners. The reasoning being that Brummer is keen on closing non-performing funds, highlighted by the closure of Zenit last year, and that Lynx currently is on track for a third consecutive year of negative performance numbers.

“Is there a risk that Brummer will close Lynx? Definitely not”, Bergström says continuing:

“Even though we have experienced an extended period of negative performance, we remain trusted by our institutional clients”.

At the same time Bergström is self critical:

“We are of course disappointed with our performance during the last couple of years”, he was quoted as saying.

Lynx was down around 11 percent on the year going into July but has since recovered as July numbers point to a positive month with the fund gaining 3.7 percent to bring the year-to-date number to -7.9 percent. Although improved, Lynx could well be on track for its worst performance in a single year since its inception in May 2000.

“The main reasons for the recent weak performance numbers is that volatility has hovered around record low levels while few markets have moved in a way that you can profit from them using a trend following strategy”, Svante Bergström told DI while at the same time reassuring that a large group of quant analysts are working hard to turn the development around.

“All our big competitors around the world has also struggled during this period”, Bergström highlighted referring to the weak performance numbers for the industry since 2015.

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

The Illusion of Longevity: Why Averages Mislead in Hedge Fund Survival

Longevity is not a defining feature of the hedge fund industry. Wide performance dispersion, impatient capital, and a high fixed-cost base create a fragile...

Elo’s Slow-Moving Hedge Fund Portfolio Built Around Access

Soon after Kari Vatanen joined Finnish pension insurer Elo as Head of Asset Allocation and Alternatives, he praised the team behind the firm’s hedge...

The New Coda: From Intuition to a Unified Investment Process

Peter Andersland is best known in the Nordic hedge fund space as the co-founder of Sector Asset Management, where he remains a shareholder. While...

When Diversification Fails: Qblue’s Case for Alternative Risk Premia

The notion that a traditional 60/40 portfolio offers meaningful diversification has long been questioned by practitioners. When implementing the Total Portfolio Approach at Danish...

Tidan NOVA Profiting from Volatility Skew as Market Participants Seek Protection

Tidan Capital’s evolution into a multi-strategy platform reflects a broader effort to deliver complementary sources of alpha, with its NOVA strategy serving as a...

Extracting Alpha from the Factor Zoo Through Systematic Investing

There are multiple ways to approach equity investing and, ultimately, the pursuit of alpha. While many strategies rely on market direction or discretionary stock...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -