Stockholm (HedgeNordic) – SRV – Fixed Income, a new Danish relative value fund that focuses on Scandinavian and European fixed income markets, has now joined the Nordic Hedge Index. The fund was launched in February of this year by Erik Bo Hansen and Torben Pedersen, both of whom spent most of their professional careers at Nordea.
SRV – Fixed Income employs a systematic approach to harvest risk premia in fixed income markets, aiming to exploit price dislocations predominantly in Nordic bond markets. The duo managing the fund anticipates to deliver an average annual return between 6-10 percent over a rolling three-year period. SRV – Fixed Income’s portfolio has minimal exposure to the interest rate risk and hedging against tail risk is an integral part of its investment strategy. The team systematically uses a portion of the harvested risk premia to buy insurance against large drawdowns.
SRV – Fixed Income currently oversees €67 million in assets under management, with the two founders anticipating the amount to double by the end of 2019. “We expect our assets under management to at least double by the end of the year, and several investors have expressed interest to join,” says Erik Bo Hansen. Each of the founders invested around one-third of a million Euros in the fund.
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