Month in Review – January 2019

Stockholm (HedgeNordic) – After suffering the worst quarter in the post-financial crisis period last quarter, Nordic hedge funds started 2019 by registering their best month since 2015. The Nordic Hedge Index (NHX) gained 1.7 percent in January (91 percent reported), with equity-focused hedge funds leading the gains.

Four of the five categories in the NHX posted gains in January, with trend-following CTAs being the only group incurring losses for the month. Nordic equity hedge funds, as measured by the NHX Equities, advanced 2.9 percent last month, the group’s best January on record and its best month since the end of 2010. On average, multi-strategy and fixed-income hedge funds gained 2 percent and 1.3 percent, respectively. Funds of hedge funds were up an estimated 0.3 percent last month. CTA funds, meanwhile, fell 1.5 percent on average, as both stock and crude oil prices reversed the trends that were shaping up in the latter part of 2018.

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Last month’s dispersion between the best and worst performing funds in the Nordic Hedge Index was wider than in December, as top performers delivered significantly higher returns than the group of laggards. The top 20 percent of hedge funds gained 8 percent on average in January, whereas the bottom 20 percent lost 2.9 percent. In December, the top 20 percent was up 2.0 percent while the bottom 20 percent lost 7 percent. Three in every four hedge funds with reported January figures in our database posted gains last month.

Long-biased equity hedge funds were last month’s best performing members of the index. HCP Focus Fund, which maintains a concentrated portfolio of high-quality companies, was up 16.5 percent in January. Rhenman Healthcare Equity L/S, meanwhile, advanced 14.3 percent. Proxy Renewable Long/Short Equity and Proxy Global Energy, two recently-launched long-biased energy-focused funds, rose 14.3 percent and 14 percent, correspondingly. Activist investor Accendo also gained 14 percent last month (read more details).