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Month in Review: NHX February 2018

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This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

Stockholm (HedgeNordic) – February turned out to be one of the worst months in terms of average returns for Nordic hedge funds, as trend-following CTAs experienced their worst monthly performance on record. Nordic hedge funds, as expressed by the Nordic Hedge Index (NHX), were down 1.5 percent in February (91 percent reported), with all five NHX sub-categories posting losses for the month.

Nordic CTAs as a group fell by 4.9 percent February, erasing the solid gains posted in the first month of the year (down 1.8 percent YTD). Fixed-income strategies declined 0.5 percent last month, ending a 23-month streak of positive performance. Equity and multi-strategy funds retreated 0.9 percent and 1.0 percent, respectively (down 0.7 percent and 0.4 percent YTD). Fund of hedge funds did not manage to avoid losses either, falling 0.8 percent (down 0.4 percent YTD).

Surprisingly, CTAs led February’s lists of both best- and worst-performing Nordic hedge funds. Informed Portfolio Management AB’s systematic vehicles, IPM Systematic Currency Fund and IPM Systematic Macro Fund, gained 7.3 percent and 5.0 percent, correspondingly. Helsinki-based commodity fund MG Commodity advanced 6.2 percent, while multi-strategy fund Aktie-Ansvar Kvanthedge was up 5.5 percent.

The list of NHX members hit the most by February’s volatile market conditions is almost entirely comprised of CTAs. Ten of the 11 worst performers are members of the NHX CTA Index. RPM Galaxy, Lynx (Sweden), Estlander & Partners Alpha Trend II – Class P, SEB Asset Selection Opportunistic, and Alfa Sigma Opportunities recorded losses of more than 10 percent in February.

View the full report here:

 

Picture © Solarseven – Shutterstock

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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

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