- Advertisement -
- Advertisement -

Nordea Abandons Hunt for Trends

- Advertisement -

Stockholm (HedgeNordic) – Trend-follower Nordea 1 – Heracles Long/Short MI Fund is set to merge with one of the three alpha products managed by Nordea’s multi-asset team before midsummer in June. The merging fund has experienced a steady decline in assets under management in recent years, with the board of directors of Nordea’s Luxembourg-based investment company deciding to merge the fund because of “limited prospects for growth.”

Christoph Sporer (pictured), a fund manager at Metzler Asset Management, has been managing Nordea 1 – Heracles Long/Short Fund (Heracles) on a mandate employing the same strategy the fund used since its inception in 2008. Heracles uses rule-based derivatives strategies to take long and short positions in liquid index futures, bond futures and currency forwards, seeking to capture three- to 12-month market trends.

The fund has struggled to generate returns in recent years due to the lack of long-lasting trends in equity markets, yields, and currencies. Last year, Heracles was the third-worst performing member of the NHX CTA after losing 18.3 percent. The fund’s share class reflected in the Nordic Hedge Index delivered a negative cumulative return of 6.6 percent since launching in late 2008. Following a prolonged period of lackluster performance, Heracles has seen its assets under management decline to 36.9 million at the end of April this year.

Heracles will be merged into Nordea 1 – Alpha 15 MA Fund, a member of the Nordic Hedge Index that employs a multi-asset approach to harvest different risk premia. The fund employs a Nordea in-house multi-asset strategy that has proven successful both in terms of performance and asset gathering. Nordea 1 – Alpha 15 MA Fund gained 8 percent in the first four months of 2019 and managed €1.3 billion at the end of April. The fund has delivered an annualized return of 4.3 percent since launching in November of 2006.

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

Borea Welcomes a New Majority Owner

Stockholm (HedgeNordic) – Norwegian fund boutique Borea Asset Management has a new majority owner. A consortium of independent banks within Frendegruppen, Norway’s second-largest banking...

Estlander Awaiting the Black Swan

Stockholm (HedgeNordic) – Finnish systematic asset manager Estlander & Partners has been in the business of providing so-called “crisis alpha” for decades through one...

Niche Opportunities in Private Credit Amid Record Dry Powder Levels

Stockholm (HedgeNordic) – The evolution of private credit as an asset class has been remarkable, attracting increasing allocations from investors. Assets under management by...

Tidan Readies Systematic Macro Launch with Linus Nilsson

Stockholm (HedgeNordic) – Stockholm-based fund boutique Tidan Capital is broadening its suite of strategies with the upcoming launch of its systematic macro initiative in...

Chelonia to Embrace Long-Biased Strategy

Stockholm (HedgeNordic) – Despite securing a spot among the top 15 best-performing Nordic hedge funds this year as a market-neutral fund, Chelonia Market Neutral...

Nykredit Hedge Funds Battle to Reverse Downtrend in Assets

Stockholm (HedgeNordic) – Despite showing improved performance, the fixed-income hedge fund trio at Nykredit Asset Management is struggling to reverse a downward trend in...

Allocator Interviews

Latest Articles

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -