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Nordic Fixed-Income HFs End Losing Streak

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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) – After three consecutive months of losses, Nordic fixed-income hedge funds experienced one of the best months in nearly two years last month. The NHX Fixed Income gained one percent (84 percent reported) in January.

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

International fixed-income hedge funds, as expressed by the Eurekahedge Fixed Income Hedge Fund Index, enjoyed their best month in the past seven years. The Eurekahedge index, which reflects the collective performance of 312 global fixed-income hedge funds, advanced two percent in January. The index was flat last year, whereas the NHX Fixed Income declined 0.4 percent during the year.

Almost the entire universe of Nordic fixed-income hedge funds posted gains in January, but there was one fund that stood out from the crowd. Nykredit EVIRA Hedge Fund, a fund that maintains a concentrated portfolio of lower-rated European corporate bonds of strong companies with improving credit quality, recovered some of the losses incurred during 2018 after gaining 7.4 percent in January. Nykredit EVIRA, which lost 16.7 percent last year, rose 8.6 percent year-to-date through February 5.

Three fixed-income hedge funds managed by Danske Bank Asset Management and one vehicle managed by Nordic Cross Asset Management, namely Nordic Cross Credit Edge, completed last month’s list of top performers in the fixed-income category. Danske Invest Fixed Income Relative Value and Danske Invest Fixed Income Global Value gained 2.2 percent and 1.8 percent last month, correspondingly.

 

Picture © mark-higgins—shutterstock

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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

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