- Advertisement -
- Advertisement -

Related

Power Cables Jolt Origo Quest

Report: Alternative Fixed Income

- Advertisement -

Stockholm (HedgeNordic) – Origo Quest 1, the equity-focused hedge fund targeting small-cap companies undergoing transformations, just recorded its best month of the year so far. The fund run by Stockholm-based asset manager Origo Capital returned 4.15% net-of-fees in September, bringing the year-to-date return to 4.19%.

The Danish industrial conglomerate NKT Holdings contributed strongly to Origo Quest’s performance, as the shares rebounded after experiencing some weakness in August due to investor concerns over weak backlog in the firm’s power cables business. The Origo team used the share price weakness to increase the stake in NKT. This position accounted for 10.47% of Origo’s assets as of end September, representing the largest holding in the fund’s concentrated portfolio.

Communications equipment company Invisio enjoyed a strong increase in its share price in September, and contributed strongly to performance as well. The fund’s short position in Swedish construction company NCC AB was yet another solid contributor to performance, having suffered a sharp fall in its share price after issuing a profit warning during the month. Meanwhile, Origo’s short position in Hexpol AB, a Swedish company engaged in the manufacturing of polymer products, hampered performance, as Hexpol shares enjoyed a strong rally in September.

E-commerce conglomerate Qliro, which has been one of Origo’s largest holdings in the past year, ranks among the best-performing stocks in Sweden this year. The firm’s shares, which were worth SEK 8.65 apiece at the beginning of the year, are currently trading above SEK 19. The Origo team estimated in its annual report for 2016  Qliro’s value to equal SEK 3.1 billion, or SEK 21 per share, stating that “a structural change in the e-commerce conglomerate Qliro would likely create shareholder value.” As predicted, a successful structural change at the company has turned out to be fruitful after all. The Qliro position accounted for 10.17% of Origo’s assets at the end of September.

Origo Quest’s main share class generated an annualised return of 15.73% since its inception in early 2013, slightly above the upper end of its target range of 10-15%. The equity-oriented hedge fund targets Nordic companies with market capitalizations below SEK 10 billion at the time of investment, with the Origo team often taking an active role in the transformation process target companies undergo.

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

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Nordic Fund Boutiques Building Strength Through Consolidation

The Nordic asset management industry is experiencing an accelerating wave of consolidation, particularly among boutique firms, including those with roots in the hedge fund...

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...

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 -