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January’s Leaders Amid Dispersion

Report: Systematic Strategies

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Stockholm (HedgeNordic) – After returning 6.4 percent on average last year, Nordic equity hedge funds gained 0.3 percent in January (92 percent reported). There was noticeable dispersion of returns across funds, as the top 20 percent returned 4.1 percent on average while the bottom 20 percent lost 3.9 percent.

Global equity markets, as measured by the FTSE World Index, rose by 0.3 percent in Euro terms last month. Nordic equities, as expressed by the VINX All-Share Index, returned a negative 0.1 percent in Euro terms. The index includes all firms listed on Nasdaq OMX Nordic Exchanges and Oslo Börs. Eurozone equities were down 1.7 percent, whereas North American stocks gained 1.7 percent in Euro terms.

Based on preliminary estimates, both European and global equity hedge funds incurred losses in January. The Eurekahedge Long Short Equities Hedge Fund Index, which tracks the performance of over 900 global equity hedge funds, was down 0.4 percent last month based on reported data from 30 percent of index constituents. European equity hedge funds, as expressed by the Eurekahedge Europe Long Short Equities Hedge Fund Index, lost 0.3 percent on average based on reported data from 30 percent of index constituents.

The dispersion between last month’s best- and worst-performing members of the NHX Equities was somewhat higher than in the previous months. The top 20 percent of members gained 4.1 percent on average, whereas the bottom 20 percent was down 3.9 percent. Approximately half of the members of the NHX Equities posted gains in January.

Systematic market-neutral fund QQM Equity Hedge was the best-performing fund in the Nordic Hedge Index last month. The fund managed by Ola Björkmo and Jonas Sandefeldt returned 5.8 percent in January. Activist fund Accendo closely followed suit with a January return of 5.4 percent. Stockholm-based long/short equity fund Gladiator Fond was up 5.1 percent, while HCP Focus Fund and Adrigo Small & Midcap L/S gained 4.7 percent and 4.0 percent, respectively.

 

Photo by Glen Carrie 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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