Stockholm (HedgeNordic) – Frost, the hedge fund launched by former employees at the now-closed Nektar at the beginning of January, has been closed to new investors after reaching its optimal level of assets under management. The relative value fund focused on Scandinavian fixed income markets reached SEK 2.5 billion in assets under management in less than a month since its launch on January 2.
Frost is managed by Martin Larsén, former deputy chief investment officer at Nektar, and Anders Augusén, a portfolio manager at Nektar for over ten years. Launched in 1998, Nektar was Sweden’s oldest hedge fund and one of the oldest hedge funds in the Nordics. The fund was closed last year after “a prolonged challenging market environment for the fund.”
Brummer Multi-Strategy, the multi-strategy fund investing in the single-strategy funds part of the Brummer & Partners family, is part of Frost’s investor base. At the end of January, Brummer Multi-Strategy’s allocation to Frost amounted to 2.8 percent. Frost is one of the ten hedge funds in the portfolio of Brummer’s multi-strategy fund of funds.
After Frost reached the optimal level of assets under management, Frost Asset Management, the asset manager running Frost, decided to close the fund for subscriptions until further notice. According to an announcement, the fund “will be closed for as long as the fund’s asset under management equals the optimal level.”
Commenting on Frost’s limited capacity in December, Mikael Spångberg, Portfolio Manager and Managing Director of Brummer Multi-Strategy, said that “we like that the fund’s capital capacity is limited to maximize the ability to deliver strong absolute returns in what is likely to be a challenging environment for traditional asset classes.”