- Advertisement -

Related

Shining When Things Turn Ugly

- Advertisement -

Stockholm (HedgeNordic) – The risk-off environment in January triggered by the coronavirus outbreak played into the hands of Volt Diversified Alpha Fund, a Stockholm-based vehicle that relies on machine learning and fundamental data to capture price moves across various markets. The fund gained 5.7 percent in January, its best month since launching in March 2017.

Volt Diversified Alpha Fund is powered by the Volt Program, a diversified systematic trading program that applies machine learning to the major asset classes through the use of futures. Fundamental in nature, the program predominantly seeks to capture price moves motivated by changes in underlying economic factors. The Volt Program also relies on technical indicators for risk management, trade timing and execution.

Whereas “the risk-off environment had only a short-lived impact on equities,” according to the team at Volt, “both energy and soft commodities saw significant selloffs.” In contrast, the U.S. dollar and bond markets rallied. Commenting on the January performance, CIO Patrik Safvenblad (pictured) says that “the Volt Program profited from the negative market sentiment” last month. “Short positions in soft commodities and long positions in fixed income made the largest contribution to profits,” further explains Safvenblad. “Metal and energy trading also made a positive contribution,” whereas the trading activity in currencies and equities detracted from performance.

Although the Volt Program maintained low net exposure to equities during January, “the net performance was negative primarily as a result of a long position in U.K. equities.” The program’s currency trading also incurred losses, mainly stemming from a short position in the U.S. dollar against the Canadian dollar and the Euro.

Volt Diversified Alpha Fund was among the ten best-performing hedge funds in the Nordics in 2018, a challenging year for most investors and fund managers. The fund gained 7.9 percent that year but gave back some of the gains towards the end of last year, as the Volt Program was positioned for a weakening global economy. November was a difficult month for the Volt Program, as long positions in fixed income and precious metals and short positions in equities detracted from performance.

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

AP3’s Jonas Thulin: “The 60/40 Portfolio Has Run Its Course”

The 60/40 portfolio was built on a simple premise: equities drive long-term returns while bonds provide stability and diversification. But that relationship is no...

The 60/40 Isn’t Dead. But the 40 Is Changing

For decades, the 60/40 portfolio has served as one of the defining frameworks for portfolio construction. While few institutional investors adhere strictly to that...

Finland’s Distressed Real Estate Market Creates Opportunities for Buyers

Finland’s commercial real-estate market is going through one of its most difficult periods in decades. Much of the coverage has focused on the pain:...

Protean Officially Launches Global Aktiesparfond

Stock-picking boutique Protean Funds Scandinavia has officially launched its low-cost active Global fund on September 15, building on the early success of its Nordic...

Why the Next Wave of ETF Growth Could Be Active

Active management is increasingly finding a home in the ETF wrapper as investors look beyond traditional index-tracking strategies for more targeted sources of alpha....

How CLO ETFs Are Expanding Institutional Access to Alternative Credit

ETFs have become an increasingly versatile tool in institutional portfolios, moving beyond tactical market access and liquidity management to serve as strategic building blocks....

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -