Facebook Twitter Instagram
    • About
    • Subscribe
    • Contact
    • Report Library
    • Manager Login
    Facebook Twitter LinkedIn RSS
    HedgeNordic
    • Home
    • Allocator Angle
    • Report Library
    • Nordic Hedge Award
      • Nominations 2021 Nordic Hedge Award
      • Rookie of the Year
      • Jury Board
      • Historic Winners
      • Statistics
    • Nordic Hedge Index
    • Webinars & Podcasts
    HedgeNordic

    Eureka? Yes, Eureka!

    Eugeniu GuzunBy Eugeniu Guzun24/02/2020No Comments
    Facebook Twitter LinkedIn Email

    Stockholm (HedgeNordic) – SEB Eureka Fixed Income Relative Value Fund, the winner of the 2018 Rookie of the Year award, has reached its second anniversary in mid-January. Seeded with DKK 1.1 billion from a handful of institutional investors, the fund was initially managed by a team of two and had no marketable track record. Fast forward two years, SEB Eureka now manages over DKK 2.5 billion, expanded its two-member team with a new portfolio manager and achieved an inception-to-date Sharpe ratio of 2.3.

    SEB Eureka employs relative-value strategies to exploit inefficiencies in Scandinavian fixed income markets. One of the strategy buckets involves taking advantage of the yield pick that can be obtained in covered bonds, but active management plays an essential role in running the fund. “Our investment philosophy is built on the ambition of being a very active participant in the Scandinavian fixed income markets,” says Chief Investment Officer Bo Michael Andersen (pictured center). “The past two years have shown that being an active investor can contribute significantly to performance.”

    SEB Eureka returned 9.5 percent net of fees since launching in mid-January 2018, where “only a third of the return comes from passively harvesting risk premiums in Scandinavian bonds,” explains Andersen. “20 percent comes from actively managing the risk exposure in the covered bond portfolio (choice of country, maturity, issuer, etc.), while 50 percent of the return comes from a wide range of other strategies in Scandinavian government bonds and over-the-counter fixed income derivatives.”

    When setting up SEB Eureka several years ago, Andersen designed a strategy that would differentiate itself “by having a broader focus on fixed income relative value and therefore being more well-diversified.” The diversification has paid off, with SEB Eureka having collected solid risk-adjusted returns from different sources. “It was part of the ambition with the fund launch to offer an institutional fund product with an attractive return-profile, but also to provide a product with diversification properties,” points out Andersen.

    After having delivered a return of 9.5 percent that exhibits a low correlation to other asset classes and a Sharpe ratio of 2.3, the team managing SEB Eureka is “very satisfied with the fund’s performance and risk characteristics.” The fund delivered positive returns in 20 months, with only four down months since launching at the beginning of 2018. The portfolio management team running SEB Eureka initially consisted of CIO Bo Michael Andersen and Portfolio Manager Tore Davidsen (pictured left). The fund is managed by a team of three after Portfolio Manager Rasmus Dall-Hansen (pictured right) joined the original duo in May of last year.

    Commenting on the fund’s journey so far, Andersen says “we feel that we are on the right path when it comes to delivering on the pre-launch ambition, namely offering a fixed income hedge fund that delivers high risk-adjusted uncorrelated returns.” The team is “extremely happy and proud to have delivered solid competitive risk-adjusted returns since launch, which has contributed to solid growth in assets under management since inception.”

    Share. Facebook Twitter LinkedIn Email
    Previous ArticleTitan Sends Money Back to Investors
    Next Article Webinar: Cracking the Next Gen of Liquid Alts
    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.

    Related Posts

    One Nordic Cross Hedge Fund is Liquidating

    Real Assets: AP4’s True “Alternative”

    HCP Bricks: ‘Value-Add’ Gate to Core Real Estate

    Add A Comment

    Leave A Reply Cancel Reply

    Time limit is exhausted. Please reload CAPTCHA.

    Most read today:
    • One Nordic Cross Hedge Fund is Liquidating
    • The Birth of Obligo’s Third Infra Fund
    • Head of Alts Jumps Ship to Join AP Pension
    • Nordic Hedge Award – Main
    • Interview: Marcus Wahlberg, Elementa
    • Lower no Longer: Cash & Carry in the Emissions Markets
    • In-Depth: Inflation Protection

    Ukraine, Supply-Chain Shortages and Soaring Prices – Accelerators of Sustainable Development

    18/05/2022

    New Theme: Real Income Destruction

    17/05/2022

    Blockification

    16/05/2022

    The Inflation Puzzle

    12/05/2022
    Promotion:
    Video: Manager Interviews
    https://www.youtube.com/watch?v=tni7dQvQrmo

    Subscribe to our newsletter

    HedgeNordic: Your Single Access Point to the Nordic Hedge Fund Industry!

    Check your inbox now to confirm your subscription.

    Most read articles this week:
    • One Nordic Cross Hedge Fund is Liquidating
    • Janus Henderson Onboards Danske Bank’s EMD Team
    • AIFM Group Adds Art to Suite of Offerings
    • St. Petri Readying Launch of Long-Only Fund
    • Head of Alts Jumps Ship to Join AP Pension
    • Procrastinated Risk is Knocking on the Door
    • Recent
    • NHX
    • In Depth

    The Birth of Obligo’s Third Infra Fund

    04/07/2022

    One Nordic Cross Hedge Fund is Liquidating

    30/06/2022

    St. Petri Readying Launch of Long-Only Fund

    29/06/2022

    AIFM Group Adds Art to Suite of Offerings

    29/06/2022

    Month in Review – May 2022

    22/06/2022

    Month in Review – April 2022

    12/05/2022

    Follow Your Favourite Hedge Fund

    11/05/2022

    Month in Review – March 2022

    13/04/2022

    Ukraine, Supply-Chain Shortages and Soaring Prices – Accelerators of Sustainable Development

    18/05/2022

    New Theme: Real Income Destruction

    17/05/2022

    Blockification

    16/05/2022

    The Inflation Puzzle

    12/05/2022
    Newsletter Subscription:
    Most Recent Posts:

    The Birth of Obligo’s Third Infra Fund

    04/07/2022

    One Nordic Cross Hedge Fund is Liquidating

    30/06/2022

    St. Petri Readying Launch of Long-Only Fund

    29/06/2022

    AIFM Group Adds Art to Suite of Offerings

    29/06/2022

    Head of Alts Jumps Ship to Join AP Pension

    28/06/2022
    Publisher

    Nordic Business Media AB
    Corporate No.: 556838-6170
    BOX 7285
    SE-103 89 Stockholm, Sweden

    VAT No.: SE-556838617001
    Tel.:+46 (0) 8 5333 8688
    Mob.: +46 (0) 7 06566688
    Email: info@hedgenordic.com

    STAY INFORMED

    HedgeNordic: Your Single Access Point to the Nordic Hedge Fund Industry!

    Subscribe to our newsletter:

    Check your inbox now to confirm your subscription.

    RSS Hedge Fund Job Digest
    • Assistant Fund Controller or Senior Associate 01/07/2022
    • Fund Accountant 01/07/2022
    • SQL Server DBA/Sybase ASE DBA 01/07/2022
    • Director of Business Development 01/07/2022
    • Principal Technical Architect 01/07/2022
    • Fund Accountant 01/07/2022
    • Associate - Investment and Operations 01/07/2022
    • Middle Office Associate 01/07/2022

    Copyright © 2022 Nordic Business Media AB

    © 2022 Nordic Business Media AB
    • About
    • Cookie Policy
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.

    We are using cookies to give you the best experience on our website.

    HedgeNordic
    Powered by  GDPR Cookie Compliance
    Privacy Overview

    This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

    Strictly Necessary Cookies

    Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

    If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.