- 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

Joakim Hannisdahl Takes His Quantitative Playbook From Shipping to Crypto

Joakim Hannisdahl is best known for his work in the highly cyclical shipping industry. After several years as a sell-side shipping analyst, he moved...

Tidan Capital Launches UCITS Version of NOVA

Swedish multi-strategy boutique Tidan Capital has launched a UCITS version of its NOVA volatility arbitrage strategy, broadening access to the strategy among institutional investors....

Folketrygdfondet on the Enduring Case for 60/40

The traditional 60/40 portfolio, combining the complementary roles of equities and bonds, remains a central reference point in institutional portfolio construction. Few investors have...

Adrigo Moves to Long-Only Approach in New Phase

Staffan Östlin stepped down from his role as portfolio manager of Adrigo Small & Midcap L/S during the summer, with responsibility for the fund...

Insurance Risk as a Source of Portfolio Diversification

HedgeNordic welcomed 15 institutional investors and investment professionals to ILS Day Stockholm, bringing together allocator and manager perspectives on the role of insurance-linked investments...

AP3’s Jonas Thulin: “The 60/40 Portfolio Has Run Its Course”

The 60/40 portfolio was built on a simple premise: equities drive long-term returns while bonds provide stability and diversification. But that relationship is no...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -