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Strong Start to 2019 Continues for Nordic Credit HFs

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Stockholm (HedgeNordic) – After enjoying a strong start into the new year, Nordic fixed-income hedge funds gained an additional one percent in February (100 percent reported). The group of credit-focused funds, as expressed by the NHX Fixed Income, returned an average 2.3 percent in the first two months of the year to make it the second-best performing group in the Nordic Hedge Index.

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

So far this year, Nordic fixed-income hedge funds have performed in line with their global counterparts. The Eurekahedge Fixed Income Hedge Fund Index, which reflects the collective performance of 323 global fixed-income hedge funds, gained 0.6 percent last month, taking the return for the year to 2.3 percent. The HFN Fixed Income (non-arbitrage) Index, which reflects the performance of fixed-income vehicles in eVestment’s hedge fund database, advanced 0.7 percent last month and 2.2 percent in the first two months of 2019.

Just as in the first month of the year, most members of the NHX Fixed Income posted gains for February. CABA Hedge and Nykredit EVIRA Hedge Fund topped the chart across the 31 fixed-income hedge funds in the Nordics, with both funds gaining 2.8 percent. CABA Hedge, a Danish hedge fund capitalizing on the yield spreads between Danish or Swedish mortgage bonds and government bonds, is up 2.3 percent this year.

Nykredit EVIRA, a fund that harvests credit risk premia in European corporate bonds, advanced 10.4 percent in the first two months of 2019, well on track to recoup last year’s 16.7 percent loss. Asgard Fixed Income Risk Premia and Asgard Fixed Income Fund closely followed suit, posting February return figures of 2.6 percent and 2.5 percent, correspondingly.

 

Picture © Ismagilov—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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