- Advertisement -
- Advertisement -

Carneo’s Views on Alternative Assets

Report: Systematic Strategies

- Advertisement -

Stockholm (HedgeNordic) – Alternative assets provide investors with useful diversification to lower the risk of volatility in their portfolios, helping them achieve better risk-adjusted returns, says Roger Johanson (pictured), Head of Alternatives at multi-boutique asset management group Carneo.

Johanson and his team at Carneo’s Alternative Solutions arm offer Nordic institutional investors access to alternative asset managers in private equity, real estate and hedge funds. Defining alternative investments in an interview with VA Insights, Johanson says that the asset class includes everything “that is not a traditional investment.” Whereas “many people think of infrastructure, real estate and private equity,” alternative assets “can also include investments in everything from cryptocurrencies to art and film production.”

With the number of listed companies declining and with bonds and equities expected to produce lower returns than in the recent past, Johanson sees clear benefits to adding alternative asset classes in investor portfolios. Looking at the extensive menu of investment opportunities in the alternatives space, Johanson points out that “globally, private equity is growing very strongly and will be the dominant asset class in the space.” A contributing factor for this development represents “the increased regulatory requirements and thus risks that are imposed on listed companies,” argues Johanson.

Discussing the obstacles associated with investing in alternatives, Johanson reckons that alternative asset classes are “capital intensive and expensive.” Moreover, investors need to consider these asset classes as investments for the very long term, which could entail “experiencing negative returns for a number of years before receiving the expected benefits.” Whereas Johanson considers that alternative assets do not exhibit higher risk than other traditional investments, he emphasizes that “it is important to have a diversified portfolio” to make the most of this asset class.

When pondering on the future of alternative investments, Johanson is confident that the asset class will continue to grow going forward. “The recipe for success is to make sure investors reach out to the best managers and realize that it takes time to build a portfolio that investors understand and can manage,” concludes Johanson.

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

The Value of Short Selling for Symmetry

Stockholm (HedgeNordic) – Stock-picking hedge fund Symmetry Invest has achieved a net-of-fees annualized return of 18 percent since its inception just over 11 years...

Month in Review – June 2024

Stockholm (HedgeNordic) – Despite June marking the end of a long streak of consecutive positive months, the Nordic hedge fund industry still achieved its...

New Equity Managers Join Borea to Bolster Fund Offerings

Stockholm (HedgeNordic) – Following the acquisition of a majority stake by Frendegruppen – a consortium of Norwegian independent banks, Borea Asset Management is strengthening...

Obligo Raises Final €75 Million for PE Fund

Stockholm (HedgeNordic) – Obigo Investment Management has announced the final close of its infrastructure-oriented private equity fund, Obligo Nordic Climate Impact Fund (ONCIF), raising...

RFP: Irish Investor in Search of Tail Risk Mitigation

Stockholm (HedgeNordic) – An Irish institutional investor seeks an overlay manager or managed options strategies to mitigate tail risk in its €2.5 billion fund-of-funds...

Cevian on Buying Spree, Discloses 5% Stake in Smith & Nephew

Stockholm (HedgeNordic) – Swedish activist investor Cevian Capital has disclosed a five percent stake in UK medical device manufacturer Smith & Nephew, signaling intentions...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -