- Advertisement -
- Advertisement -

Steady Run for Nordic Fixed-Income Hedge Funds

- Advertisement -

Stockholm (HedgeNordic) – Nordic fixed-income hedge funds, as measured by the NHX Fixed Income, returned 7.1% on average in 2017, after gaining 0.2% (96% reported) in the last month of the year. Fixed-income strategies delivered positive returns for the 22nd consecutive month in December, with the NHX Fixed Income Index becoming the best-performing NHX sub-category in 2017.

Nordic fixed-income hedge fund players performed in line with their international counterparts last year, as benchmarks tracking the performance of fixed-income strategies delivered mid-single digit gains. For instance, the Eurekahedge Fixed Income Hedge Fund Index, an equally-weighted index of 353 fixed-income hedge funds, returned 6.9% in 2017. The index gained an estimated 0.4% in December, with 66% of all constituents having reported December returns as of January 22, 2018.

Asgard Credit Fund, a replica of the classic income arbitrage strategy implemented by Asgard Fixed Income Fund, was the best-performing player among Nordic fixed-income hedge funds in December, returning 1.8% for the month (7.3% for 2017). KLP Alfa Global Rente, a fixed-income fund seeking to exploit mispricing in global fixed-income and foreign exchange markets, gained 1.4% last month and was up 7.2% for the year. Borea European Credit, the fixed-income fund managed by Norwegian Borea Asset Management AS, advanced 0.8% in December and was up 15.7% for the year. The fund clinched the title of the second-best performing fixed-income fund in the Nordics in 2017.

Several funds lagged peers by an immaterial margin in December: Formuepleje Fokus, which primarily invests in Danish mortgage bonds, lost 0.5% in December, erasing some of the full-year gains to 6.7%. Asgard Fixed Income Fund, three-time winner of HedgeNordic’s “Best Nordic Fixed Income Focused Fund” award, was down 0.5% in December (11.7% for 2017).

 

Picture (c): shutterstock-andrey-yurlov

close

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

Most Popular This Week

Voices

Request for Proposal

- Advertisement -

Latest Articles

RFP: Absolute Return Multi-Strategy/Fund of Funds

(Global Fund Search) - A Danish Institutional Investor is searching for an absolute return strategy for an allocation of EUR 40 million. The mandate...

Brummer Multi-Strategy Navigates 2022’s “Perfect” Storm

Stockholm (HedgeNordic) – 2022 experienced a “perfect” inflation storm due to an unprecedented amount of monetary and fiscal policy stimulus during the pandemic, war,...

Dream Comes True for Grönblom

Stockholm (HedgeNordic) – Ernst Grönblom had been running his high-conviction strategy of cherry-picking the stock market’s undervalued future winners under the umbrella of United...

Boarding the Broader Alternatives Ship

Stockholm (HedgeNordic) – Tore Davidsen, portfolio manager of SEB Eureka Fixed Income Relative Value since its launch in 2018, will join BankInvest as Senior...

Year of Stabilization of Interest Rates

By Kari Vatanen, CIO of Veritas: The year 2022 was a year of negative surprises in the investment markets and in the global economy. Hopes...

Playing Offense in the Net-Zero Transition

Stockholm (HedgeNordic) – The world’s adoption of cleaner energy had been ongoing prior to Russia unleashing war in Ukraine. The war and its consequences...