- Advertisement -
- Advertisement -

Related

Ambrosia winding down, cites difficult market environment

Report: Alternative Fixed Income

- Advertisement -

Stockholm (Hedgenordic) – The Swedish macro hedge fund Ambrosia, which started only two and a half years ago, is winding down citing dissappointing performance and uncertainty about when the current difficult market environment will come to an end. This according to an investor letter from Ambrosia‘s CIO, Torbjörn Olofsson (pictured), that was republished on the website “investerardygnet“.

In the letter, Olofsson states that the performance of the fund, which amounts to 30 basis points above the risk free rate per annum since inception of Ambrosia XL, has not been in line with the fund’s ambition of delivering 500 basis points above the risk free rate per annum.

The letter further states that the market environment for macro hedge funds has been difficult in recent years, especially for funds focused on fixed income markets in Europe, including Sweden. Key reference rates have hardly moved for an extended time period and interest rate moves have been very limited. On top of that the QE-programs of central banks have had a profound impact on liquidity and prices,  Olofsson writes continuing:

Ambrosia have not managed to adapt its positioning to this new reality. We have had difficulties navigating in an envirionment of extremely low interest rates and strong growth. For a long period of time, at least 18 months, we have misjudged the development of interest rates in Sweden and to a certain degree also in Europe, which has resulted in weak performance for the fund.”

“I cannot hold for certain that the years to come will not mirror the market environment we have experienced in recent years. In this perspective, I feel a growing anxiety regarding our ability to handle such a market environment in a good way.”

As from the month-end of July, the fund will be managed passively as all active positions have been closed. Investors will be able to redeem fund units by the end of August, the letter states. No fees will be charged unit holders during the month of August.

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

Our newsletter is sent once a week, every Friday.

HedgeNordic Editorial Team
HedgeNordic Editorial Team
This article was written, or published, by the HedgeNordic editorial team.

Latest Articles

Industriens Pension Appoints Marselis CIO as Head of Real Assets

Industriens Pension has named Peter Mikkelsen as its new Head of Real Assets. Mikkelsen, who has served as co-owner and Chief Investment Officer at...

Inflation, Not Trump, Should be the Real Concern

After delivering a passionate speech at Carmignac’s annual investor and media event – earning a hug from founder Edouard Carmignac – Head of Cross...

Atlant Fonder Strengthens Credit Expertise

Hedge fund boutique Atlant Fonder has strengthened its portfolio management team with the appointment of Carl Johan Lagercrantz as a fixed-income portfolio manager. Lagercrantz...

Danske Bank AM Expands Quant Offering

Stockholm (HedgeNordic) – Danske Bank Asset Management’s Quant & Overlay team, known for managing several quant-focused hedge funds, has announced the launch of a...

Laura Wickström Refines Diversification Strategy at Veritas

In late 2024, Laura Wickström concluded her first annual planning cycle as Chief Investment Officer at Veritas Pension Insurance Company, which shaped the investment...

LGT CP Appoints Ingrid Albinsson to Advisory Board

Stockholm (HedgeNordic) – LGT Capital Partners, a global specialist in alternative investing, has announced the appointment of Ingrid Albinsson, the former Deputy CEO and...

Allocator Interviews

In-Depth: Megatrends

Voices

Request for Proposal

- Advertisement -