Facebook Twitter Instagram
    • About
    • Subscribe
    • Contact
    • Report Library
    • Manager Login
    Facebook Twitter LinkedIn RSS
    HedgeNordic
    • Home
    • Allocator Angle
    • Report Library
    • Nordic Hedge Award
      • Nominations 2021 Nordic Hedge Award
      • Rookie of the Year
      • Jury Board
      • Historic Winners
      • Statistics
    • Nordic Hedge Index
    • Webinars & Podcasts
    HedgeNordic

    In search for small-cap growth – Nordic Cross in new fund launch

    Jonathan FurelidBy Jonathan Furelid09/02/2018No Comments
    Facebook Twitter LinkedIn Email

    Stockholm (HedgeNordic) – Nordic Cross Asset Management, the alternative investment management company that runs under the Caram umbrella organisation, just recently launched its third fund – Nordic Cross Small Cap Edge. The launch follows on the two launches that were made last year; Nordic Cross Total Return Bond Fund and Nordic Cross Stable Return. The new fund is managed by Mikael Hanell (pictured), Emil Nordström and Ulf Strömsten.

    Nordic Cross Small Cap Edge aims at finding small-cap companies with exceptional growth prospects while limiting the downside through the use of shorting. The startegy builds on fundamental analysis and invests primarily in Swedish companies.

    The core holdings in the fund are long positions in small companies having a market capitalization of less than 35 billion SEK. The fund´s short positions will be focused on companies above the 20 billion mark in terms of market cap. The size difference is explained by the fact that the fund seeks to capture the higher growth that is typically present among smaller sized companies and that has been an important diver of stock market returns in recent years,

    “The fund is an alternative small-cap fund where the focus is on exploiting the growth potential among smaller companies relative to larger companies. This approach allows the investor to get an exposure to small-cap companies to a lower market risk as the fund also holds short positions”, Hanell says.

    The reason that the fund is being launched at this particular point in time has to do with the fact that the stock market has had a period of very strong performance, which according to Hanell makes the relatively low market risk even more appealing.

    “As equity markets have performed strongly for quite some time now, we feel that the timing is very good. The fund allows for an exposure to smaller companies that have the possibilty to show stronger growth compared to the overall market, while at the same time capping the market risk. Small companies today can gain market share quickly on the back of digitalization trends, the growth within sectors such as IT and medtech are significant in the small-cap index. The number of listed companies has also increased considerably in the last five years, while analysts are covering fewer companies, this suits us perfectly.”

    In terms of how the fund will use long and short positions, Hanell explains that there will typically be 15-25 long positions on at any given point in time, while the short book will consist of 2-5 short stock positions. The fund will also use futures and options for downside protection. Besides the fundamental approach underlying the fund´s position taking, it also employs a quant strategy which aims at capturing the differences in valuations between small and large companies.

    The funds is currently in a build-up phase and today holds 13 longs and 2 shorts, the fund is also short the OMX index and holds a smaller position initiated by the quant strategy.

    In answering what experiences Nordic Cross brings to the new fund from previous fund launches, Hanell says:

    “This is an entirely new product that builds on our long experience of investing in small-cap companies. The fund will run at a higher risk compared to the other funds. There is siginficant interest to invest in smaller companies and many funds have been launched to meet that demand, however most of them are long only. We bring something different to the table.”

    Hanell believes that the backround of the different people in the investment team makes for a perfect fit.

    “Ulf´s analytical background, my experience in managing funds of small-cap companies coupled with Emil´s skills in the derivatives space make us perfectly complementary.”

    The fund was launched on December 18, 2017 and aims to gather interest among institutional investors as well as attracting a retail audience.

    “I believe there will be demand among institutions as well as among private banking clients, family offices and foundations who seek exposure to smaller companies to a limited risk”, Hanell concludes.

     
    Share. Facebook Twitter LinkedIn Email
    Previous ArticleEuropean Utilities – the Long, the Short and the Green
    Next Article Last Meal for Hedge Funds?
    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

    Related Posts

    CTAs Starting Summer on a High Note

    Nordic Quant Funds Win Awards

    A Light-Footed Shipping-Only Strategy

    Add A Comment

    Leave A Reply Cancel Reply

    Time limit is exhausted. Please reload CAPTCHA.

    Most read today:
    • Mortgage Funds – Alternative Fixed Income, or Just the New T...
    • Lower no Longer: Cash & Carry in the Emissions Markets
    • Adding Leverage to a Fund Does Not Always Increase Risk
    • Tidan is Different
    • Investing in Commodities as an Inflation Hedge?
    • ESG Implementation in Mandatum’s Private Debt Program
    • In-Depth: Inflation Protection

    Ukraine, Supply-Chain Shortages and Soaring Prices – Accelerators of Sustainable Development

    18/05/2022

    New Theme: Real Income Destruction

    17/05/2022

    Blockification

    16/05/2022

    The Inflation Puzzle

    12/05/2022
    Promotion:
    Video: Manager Interviews
    https://www.youtube.com/watch?v=tni7dQvQrmo

    Subscribe to our newsletter

    HedgeNordic: Your Single Access Point to the Nordic Hedge Fund Industry!

    Check your inbox now to confirm your subscription.

    Most read articles this week:
    • Real Assets: AP4’s True “Alternative”
    • Special Report: Private Markets
    • European Real Estate in the New Economic Climate
    • PFA Hires PM from Hedge Fund Space
    • ESG Implementation in Mandatum’s Private Debt Program
    • Month in Review – May 2022
    • Recent
    • NHX
    • In Depth

    Procrastinated Risk is Knocking on the Door

    23/06/2022

    PFA Hires PM from Hedge Fund Space

    22/06/2022

    Month in Review – May 2022

    22/06/2022

    Real Assets: AP4’s True “Alternative”

    20/06/2022

    Month in Review – May 2022

    22/06/2022

    Month in Review – April 2022

    12/05/2022

    Follow Your Favourite Hedge Fund

    11/05/2022

    Month in Review – March 2022

    13/04/2022

    Ukraine, Supply-Chain Shortages and Soaring Prices – Accelerators of Sustainable Development

    18/05/2022

    New Theme: Real Income Destruction

    17/05/2022

    Blockification

    16/05/2022

    The Inflation Puzzle

    12/05/2022
    Newsletter Subscription:
    Most Recent Posts:

    Procrastinated Risk is Knocking on the Door

    23/06/2022

    PFA Hires PM from Hedge Fund Space

    22/06/2022

    Month in Review – May 2022

    22/06/2022

    Real Assets: AP4’s True “Alternative”

    20/06/2022

    European Real Estate in the New Economic Climate

    20/06/2022
    Publisher

    Nordic Business Media AB
    Corporate No.: 556838-6170
    BOX 7285
    SE-103 89 Stockholm, Sweden

    VAT No.: SE-556838617001
    Tel.:+46 (0) 8 5333 8688
    Mob.: +46 (0) 7 06566688
    Email: info@hedgenordic.com

    STAY INFORMED

    HedgeNordic: Your Single Access Point to the Nordic Hedge Fund Industry!

    Subscribe to our newsletter:

    Check your inbox now to confirm your subscription.

    RSS Hedge Fund Job Digest
    • Fund Quant Developer 24/06/2022
    • Corporate Accountant 24/06/2022
    • Institutional Sales – Assistant Vice President 24/06/2022
    • Quality Controls Analyst 24/06/2022
    • Counterparty Credit Risk VP 24/06/2022
    • Assistant Trust Officer 24/06/2022
    • Assistant Vice President – Residential Mortgage Analytics 24/06/2022
    • Senior Lead Analyst 24/06/2022

    Copyright © 2022 Nordic Business Media AB

    © 2022 Nordic Business Media AB
    • About
    • Cookie Policy
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.

    We are using cookies to give you the best experience on our website.

    HedgeNordic
    Powered by  GDPR Cookie Compliance
    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.

    Strictly Necessary Cookies

    Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

    If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.