- Advertisement -
- Advertisement -

HCP Focus Crowned as Best Long-Only Equity HF

- Advertisement -

Stockholm (HedgeNordic) – HCP Focus Fund, a member of the Nordic Hedge Index managed by Finnish portfolio manager Ernst Grönblom, has been ranked the best long-only equity hedge fund in the world over the previous three years by BarclayHedge. HCP Focus made the top ten in BarclayHedge’s quarterly ranking in ten quarters out of the 13 last quarters based on three-year returns. No other fund in this 338-member category managed to reach the top ten leaderboard this many times.

These quarterly rankings are displayed in the Barclay Managed Funds Report, which presents the top ten best performing funds across 21 different categories every quarter based on the previous three-year returns. Only hedge funds with a track record of at least three years and assets under management of at least $10 million are eligible for inclusion in the report.

HCP Focus, which follows the discipline of value investing to build a very concentrated portfolio of undervalued high-quality businesses, features in the “Equity Long Only” category that consisted of 338 funds in the report for the first quarter of 2019. With HCP Focus launched in November of 2012, the fund has been eligible for inclusion in BarclayHedge’s quarterly rankings 13 times starting with the first quarter of 2016.

Grönblom’s fund holds the record for most appearances in the top ten list over the previous 13 quarters, being the only vehicle in the “Equity Long Only” category reaching the top ten more than seven times. Grönblom takes this consistency as “supporting evidence that the HCP Focus Fund’s strategy and philosophy are built on solid, lasting foundations, as opposed to many “flash-in-the-pan” and “one-trick-pony” strategies that produce stellar returns for a brief period of time, only to fade out.”

Grönblom currently maintains a portfolio of 12 businesses that benefit from the notion of demand-side economies of scale, or network effects. Amazon.com, Match Group, PayPal and Facebook are among his largest holdings at the moment. Grönblom attempts to buy such high-quality businesses at a significant discount to his estimate of intrinsic value. Explaining why companies such as Amazon.com and Facebook are undervalued, Grönblom tells HedgeNordic that “market participants systematically underestimate and misunderstand the power of the winner-take-all phenomenon.”

HCP Focus earned an annualized return of 19.8 percent since launching in late 2012 and has yet to incur a year of negative performance. The fund gained 27.7 percent in the first five months of 2019, currently ranking as this year’s best performing member of the Nordic Hedge Index.

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

Leveraging Opportunities in Credit Markets

Stockholm (HedgeNordic) – After several years of successful bond investing through a private investment company, Nicolai Wenckheim launched an alternative investment fund in March...

ATP’s Response to Changing Equity-Bond Correlations

Stockholm (HedgeNordic) – In 2022, the usual negative correlation between equities and bonds, essential for the construction of diversified portfolios, disappeared. This rare anomaly,...

Evolution in Hedge Fund Investing with LGT Collaboration

Stockholm (HedgeNordic) – Since Peter Ragnarsson assumed the role of Head of Alternatives at PRI Pensionsgaranti in 2015, the Swedish pension insurer has significantly...

Borea Expands Sustainability Focus with New Hire

Stockholm (HedgeNordic) – Norwegian fund boutique Borea Asset Management has expanded its management team with the hiring of Iselin Ahmer Solberg as a corporate...

Schroders Strengthens Nordic Client Team

Stockholm (HedgeNordic) – Schroders is expanding its client relationship capabilities in the Nordics with the appointment of Ludvig Löfving as a Client Director. He...

The Lynx Constellation Is Brightening Up

Stockholm (HedgeNordic) – Lynx Asset Management made headlines in late 2019 with the launch of its pure-play machine learning strategy, Constellation, as a standalone...

Allocator Interviews

Latest Articles

Man Institute Insights


Request for Proposal

- Advertisement -