- Advertisement -
- Advertisement -

Related

Danske Bank’s Fixed Income HFs on the Rise

Report: Alternative Fixed Income

- Advertisement -

Stockholm (HedgeNordic) – Investors have directed sizable capital flows towards Danske Bank’s fixed income hedge funds, which now collectively manage over €2 billion – double the amount of assets managed at the beginning of 2014. The increased appetite comes on the back of increased investor awareness about hedge funds and the bank’s fixed income hedge funds in particular, as well as their strong track record.

“First of all, investors have generally become more aware of the attractive return opportunities afforded by hedge funds and also their contribution to portfolio diversification,” Michael Petry (pictured), head of hedge funds at Danske Bank Asset Management, puts forward one reason for the increased interest towards the bank’s fixed income hedge funds. “Second, we have managed to build a very strong track record for our fixed income hedge funds, which in recent years have received major recognition,” he adds.

“For example, last year one of our funds scooped a EuroHedge Award for best long-term performance over ten years,” Petry refers to Danske Invest Hedge Fixed Income Strategies, which enjoyed double-digit gains in seven of the ten years since the financial crisis and earned an annualized return of 17.7 percent over those ten years. Danske Invest Fixed Income Relative Value received the title of the “Best Nordic Fixed Income Hedge Fund” at the Nordic Hedge Award in 2017. The bank’s fixed income vehicles have been on the podium at four of the seven editions of the Nordic Hedge Award.

One important attribute behind the stable, long-term performance of the bank’s fixed income strategies has been continuity, argues Petry. “Over the years, Danske Bank Asset Management has managed to maintain a core of skilled and experienced portfolio managers and risk analysts who complement each other well.” Danske Bank Asset Management currently has four fixed income hedge funds under its umbrella, with Danske Invest Fixed Income Global Value being the latest addition to the family. The youngest fund managed by chief portfolio manager Søren Mørch has a more global focus compared to the other three fixed income hedge funds. The fund gained 8.4 percent in its first 12 months of operations.

Although all four funds differ from each other, the entire group follows the same core principles. “All the funds aim to deliver a positive, absolute return, regardless of the direction of the financial markets, and they do this via a long series of strategies that seek to capitalise on interesting patterns and discrepancies in fixed income and bond market pricing,” explains Petry.

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

‘Ketchup Effects’ Behind Elementa’s Strong November

Stockholm (HedgeNordic) – After a year of ups and downs, long/short equity fund Elementa made a leap forward in November, gaining 6.0 percent and...

November Turns Othania’s 2024 from “Great” to “Fantastic”

Stockholm (HedgeNordic) – For Danish fund boutique Othania, 2024 was already shaping up to be a great year in terms of performance. November, however,...

A Smarter Governance Model for Hedge Funds

By Sofia Beckman – North House: Over the past two decades, hedge funds have faced an increasingly complex regulatory landscape. Each wave of new...

Outsourcing vs. Insourcing: Key Strategic Choices for Asset Managers

The financial landscape is constantly evolving, presenting asset managers with a wide range of complex decisions regarding technology, operational efficiency, regulation, and more. In...

Investor relations in 2024/2025

By Hannah Smith – Edgefolio: Fund marketing and investor relations are two sides of the same coin. As with most subscription sales, there is...

The Challenge of Oversight and Control

By Carl-Fredrik Svensson, CEO – Daymi: Good oversight is becoming increasingly harder as the industry continues to grow with more outsourcing partners, new software...

Allocator Interviews

In-Depth: Megatrends

Voices

Request for Proposal

- Advertisement -