Stockholm (HedgeNordic) – Swedish energy-focused asset manager Proxy P Management AB launched three long/short equity funds amidst the market turbulence of December to complement its suite of long-only products. All three vehicles have now joined the Nordic Hedge Index (NHX) as members of the NHX Equities sub-category.
The trio includes Proxy Long/Short Energy, a vehicle that maintains a net market exposure between plus and minus 25 percent, and two long-biased long/short funds – Proxy Global Energy and Proxy Renewable Long/Short Energy. The fund exhibiting the lowest net market exposure, Proxy Long/Short Energy, aims to maintain a target level of volatility in the range of 6-8 percent in annualized terms and covers the full spectrum of energy companies, including firms with business operations related to oil, natural gas, and renewable energy. Proxy Global Energy and Proxy Renewable Long/Short Energy serve as long-biased versions of the preceding vehicle, where the latter fund focuses on companies operating in the renewable energy and energy tech sectors, and the former invests in oil and natural gas companies.
All three funds are managed using a combination of quantitative models and fundamental thematic analysis. The team describes its investment approach as top-down thematic, which means the security selection process starts with the identification of broader macroeconomic themes that narrows down the list of investment candidates. The team then analyzes companies that are part of the broader themes identified in the prior process using a bottom-up approach. The portfolio management team, currently comprised of Hans Berglund, Jonas Dahlqvist and Niklas Hedman, consider themselves as both mathematicians and “old school” fundamentalists.
“In the energy sector, a lot of inefficiencies arise when information from the physical and financial commodity sectors is incorporated into company valuations. Our sector expertise and know-how, in combination with a quantitative process, enables us to analyze large amounts of data and take advantage of these inefficiencies,” Dan Lindström (pictured), the CEO of Proxy P Management, tells HedgeNordic. “The energy sector, which has been a slow-changing traditional sector over time, is also about to go through an era of disruptive transformation that creates investment opportunities. We possess the toolboxes and expertise to exploit this pool of opportunities,” Lindström adds.
Berglund and Dahlqvist are responsible for managing Proxy Long/Short Energy, and each of them is responsible for the day-to-date management of the other two funds. Berglund, chief investment officer at Proxy P Management, manages Proxy Global Energy, while portfolio manager Dahlqvist oversees Proxy Renewable Long/Short Energy.
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