Stockholm (HedgeNordic) – Alfa Aktiv, one of the vehicles managed by Swedish quant-focused hedge fund shop Alfakraft Fonder AB, has joined the Nordic Hedge Index (NHX). Despite being classified as a global equity fund on Sweden’s Premium Pension Authority (PPM) platform, Alfa Aktiv operates as a fundamental hedge fund trading equities and futures contracts on Swedish markets.
Alfa Aktiv mainly trades futures on the OMX Stockholm 30 Index (OMXS30) or similar index-linked securities, aiming to achieve risk-adjusted outperformance versus OMXS30. The fund’s investment research process combines technical and fundamental analysis (mostly broader macroeconomic analysis), with the fund using a risk on and risk off approach to investing. The investment mandate allows Alfa Aktiv to invest its assets in derivative instruments, transferable securities, money market instruments, fund units and accounts with credit institutions.
Bengt Lindblad, a co-founder of Alfakraft Fonder AB, has been in charge of Alfa Aktiv since its inception in August 2015. The fund generated a cumulative return of 24.9 percent since the launch through August of this year, corresponding to a compounded annual return of 7.5 percent. Up until now, Alfa Aktiv successfully achieved its objective of beating OMXS30 with less volatility. The OMX Stockholm 30 Index returned 2.5 percent since August 2015 through the end of last month, exhibiting a monthly volatility of 3.2 percent (annualized volatility of 11.2 percent). Meanwhile, the realized volatility of Alfa Aktiv’s monthly returns on an annualized basis equals only 7.1 percent (monthly volatility of 2.0 percent).
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