- Advertisement -

Related

Widening Spreads Hurt Nordic Fixed-Income HFs

- Advertisement -

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.

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.

 

Picture © alexskopje—shutterstock

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

Latest Articles

Nordic Wealth Manager Targets €50-75m Hedge Fund Allocation

A Scandinavian-based wealth manager is seeking to allocate €50-75 million to a liquid alternative strategy. According to a request for proposal (RFP) via Global...

Brittle Peace, Fragile Trends: CTAs Battle April Volatility

In April, the NHX CTA Index delivered a positive return despite multiple trend reversals following the fragile ceasefire between the U.S. and Iran. Performance...

The Illusion of Longevity: Why Averages Mislead in Hedge Fund Survival

Longevity is not a defining feature of the hedge fund industry. Wide performance dispersion, impatient capital, and a high fixed-cost base create a fragile...

Elo’s Slow-Moving Hedge Fund Portfolio Built Around Access

Soon after Kari Vatanen joined Finnish pension insurer Elo as Head of Asset Allocation and Alternatives, he praised the team behind the firm’s hedge...

The New Coda: From Intuition to a Unified Investment Process

Peter Andersland is best known in the Nordic hedge fund space as the co-founder of Sector Asset Management, where he remains a shareholder. While...

When Diversification Fails: Qblue’s Case for Alternative Risk Premia

The notion that a traditional 60/40 portfolio offers meaningful diversification has long been questioned by practitioners. When implementing the Total Portfolio Approach at Danish...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -