- Advertisement -
- Advertisement -

Related

Nordic Equity HFs Dip Further in December

Latest Report

This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

Stockholm (HedgeNordic) – The last month of 2018 saw Nordic equity hedge funds suffer their worst month in seven years as equity markets plummeted across the globe. The equity-focused members of the Nordic Hedge Index (NHX) lost 2.9 percent in December (89 percent reported), which brought their collective performance for the year further into negative territory at down 3.6 percent.

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

In spite of their poor performance on an absolute basis, Nordic equity hedge funds beat Nordic and global equity market indices in December. Nordic equities, as measured by the VINX All-share index, delivered a negative net return of 4.7 percent in Euro terms last month. The index, which includes all firms listed on NASDAQ OMX Nordic Exchanges and Oslo Börs, posted a net return of minus 5.9 percent for the year. Global equity markets, as measured by the FTSE World Index, fell 8.0 percent in Euro terms last month, which took the performance for the year to down 4.2 percent. Eurozone equities declined 5.8 percent in December, while North American equities tumbled 9.8 percent in Euro terms.

Both Nordic-based and international equity hedge funds took big hits to their last year’s returns in December. The Eurekahedge Europe Long Short Equities Hedge Fund Index, which tracks the performance of 174 European vehicles, declined 2.1 percent last month, extending the loss for the full-year to 6.2 percent. The Eurekahedge Long Short Equities Hedge Fund Index, which comprises 969 global equity hedge funds, was down 2.7 percent in December, ending the year at down 6.4 percent. The Barclay Equity Long/Short Index fell an estimated 2.1 percent in December and was down 3.4 percent for the year. The HFN Long/Short Equity Index, which reflects the performance of equity hedge funds in eVestment’s database, declined 3.5 percent last month, which took the return for the entire 2018 to down 6.4 percent.

Only five of the 61 members of the NHX Equities achieved positive returns in December. Systematic market-neutral fund QQM Equity Hedge gained an estimated 2.1 percent last month, which halved the fund’s loss for 2018 to 2.1 percent. Europe-focused equity hedge fund Bodenholm, meanwhile, was up 0.8 percent in December. The Brummer & Partners-backed vehicle gained 6.6 percent last year. Long/short equity fund Arcturus gained 0.4 percent in the last month of 2018, which reduced its full-year decline to 7.6 percent.

 

Picture © Shutter_M—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

Confluence Marks Next Step in Tidan Capital’s Evolution

Stockholm-based fund boutique Tidan Capital has officially launched its multi-strategy fund vehicle, Confluence, with the strategy now overseeing $265 million across fund and separately...

Trend-Followers Stay the Course in October

The CTA sub-index of the Nordic Hedge Index advanced for a second consecutive month in October, supported by continued trends in precious metals and...

From Exclusive to Accessible: Coeli Listed Real Estate

In the summer of 2024, Swedish asset manager Coeli partnered with real estate specialist Peter Norhammar and NRP Anaxo Management to launch a concentrated...

Strong Earnings Drive Norron Select Higher in October

Mid-to-late October is always a busy earnings season for public companies and, by extension, for stock-picking managers. For long/short equity fund Norron Select, a...

Report: Alternative Fixed Income 2025

As 2025 is deep in its final quarter, investors find themselves navigating a world of contradictions. Equity markets, flush with liquidity and investor optimism,...

Beyond Plain-Vanilla: Ridge Capital Navigates Three Distinct Market Years

In a traditional high-yield bond fund, the yield-to-maturity often serves as a rough indicator of expected returns. Ridge Capital, however, operates with a more...

Allocator Interviews

In-Depth: High Yield

- Advertisement -

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.