Widening Spreads Hurt Nordic Fixed-Income HFs

spot_img

Stockholm (HedgeNordic) – In November, Nordic fixed-income hedge funds recorded their worst monthly fall in the past three years, as credit spreads widened and liquidity in bond markets dried up. The NHX Fixed Income was down 1.0 percent last month (93 percent reported), cutting the category’s year-to-date gains to 0.2 percent.

Speedometer: The November performance of the NHX Fixed Income Index relative to its best and worst monthly performance since 2010. Source: HedgeNordic.

Nordic fixed-income hedge fund slightly underperformed their global counterparts in November, but both groups have been performing in unison in recent months. The Eurokahedge Fixed Income Hedge Fund Index, which tracks the performance of 337 global fixed-income hedge funds, fell 0.6 percent in November, taking the year-to-date performance through November to 0.4 percent. The HFN Fixed Income Index (non-arbitrage), an index that reflects the performance of fixed-income vehicles in eVestment’s database of hedge funds, was down 0.7 percent last month. The HFN index gained 0.6 percent this year through November. Credit spreads on both global high-yield bonds and investment-grade bonds increased during November after a similar increase in October, which led to a deteriorating in bond prices that hurt both Nordic and global fixed-income hedge funds.

Most funds included in the NHX Fixed Income reported losses for November, as only three vehicles posted gains for the month. Direct lending fund Scandinavian Credit Fund I gained 0.5 percent in November, which brought the fund’s year-to-date gains to 6.8 percent. The alternative investment fund providing direct loans to small- and medium-sized companies is the best-performing member of the NHX Fixed Income this year.

Chart by Visualizer

Formuepleje Fokus and HP Hedge, two vehicles investing in Danish mortgage bonds, were up 0.3 percent in November. Formuepleje Fokus is up 1.7 percent year-to-date and HP Hedge gained 5.0 percent this year. Nykredit EVIRA Hedge Fund, which maintains a concentrated portfolio of lower-rated European corporate bonds of strong companies with improving credit quality, incurred a loss of 7.3 percent last month. The fund fell 15.4 percent year-to-date through November.

Chart by Visualizer

 

Picture © alexskopje—shutterstock

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

Most Popular Today

Most Popular This Week

- Advertisement - spot_img

Latest Articles

Three Nordic Winners at HFM Awards

Stockholm (HedgeNordic) – Three Nordic asset managers, Oslo Asset Management, Lynx Asset Management, and Storm Capital Management, were awarded during the HFM European Performance...

CEO Succession at Rhenman & Partners

Stockholm (HedgeNordic) – Rhenman & Partners Asset Management has appointed Teresa Isele as its new CEO to replace co-founder and current CEO Göran Nordström,...

Optimizing for Performance

Stockholm (HedgeNordic) – After almost 20 years of equity market experience from three of the largest banks in the Nordics, Pontus Dackmo launched earlier...

Danske Lost the Eliksir

Stockholm (HedgeNordic) – Danske Bank’s Finnish fund management arm announced the decision to terminate three alternative investment funds, including the Eliksir fund of hedge...

Global Assets Dynamic Set in Motion

Stockholm (HedgeNordic) – Norwegian boutique investment firm Global Assets has launched Global Assets Dynamic, a quantitatively-managed equity fund that mitigates portfolio downside risk using...

Team Ress Grows with Junior PM

Stockholm (HedgeNordic) – The Stockholm-based portfolio management team picking and buying U.S. life insurance policies for Ress Capital’s alternative investment fund, Ress Life Investments,...