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Quiet August for Nordic Fixed-Income HFs?

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Stockholm (HedgeNordic) – Nordic fixed-income hedge funds edged down 0.3 percent in August (97 percent reported), the second negative month for the group in 2019. On a year-to-date basis, the fixed-income funds within the Nordic Hedge Index gained 3.7 percent on average. While the August performance figures are not attention-grabbing, fund managers had to navigate some volatile markets during the month. Nykredit MIRA has been on a disappointing run of performance after falling 8.5 percent in August alone and 15.4 percent year-to-date.

Global fixed-income hedge funds slightly outperformed their Nordic peers last month. The Eurekahedge Fixed Income Hedge Fund Index, which reflects the performance of over 300 funds employing fixed-income strategies, edged up 0.1 percent in August. The Eurekahedge index gained 5.7 percent in the first eight months of 2019. The HFN Fixed Income (non-arbitrage) Index, which tracks the performance of fixed-income funds in eVestment’s hedge fund database, was up 0.3 percent last month, which brought its year-to-date performance to 5.0 percent.

More than half of all constituents of the NHX Fixed Income, currently comprised of 32 members, posted gains for August. HP Hedge Fixed Income, the youngest fund managed by Copenhagen-based HP Fondsmæglerselskab, was last month’s best-performing member of the NHX Fixed Income with a gain of 2.0 percent. The fund advanced 6.5 percent year-to-date through the end of August and delivered a cumulative return of 6.6 percent since launching in October of last year.

CABA Hedge was up 1.1 percent last month, which brought its year-to-date return to 4.5 percent. Nykredit EVIRA Hedge Fund, this year’s best-performing fixed-income hedge fund in the Nordic Hedge Index, gained 0.9 percent in August and was up 25.2 percent in the first eight months of 2019. The fund manages a leveraged portfolio of BBB- and BB-rated European corporate credit. SEB Alternative Fixed Income and Hamiltonian Global Credit Opportunity were up 0.8 percent and 0.7 percent, respectively.

 

Photo by Leo Wieling on Unsplash

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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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