- Advertisement -

Related

Put to the Test on Day One

- Advertisement -

Stockholm (HedgeNordic) – DNB Asset Management launched a multi-strategy, multi-asset absolute return fund on February 25, during a week that saw some of the largest stock market declines since the financial crisis of 2008. As one turbulent week ended, DNB Fund Multi Asset faced a few more weeks of heightened volatility, uncertainty and falling prices. “It would be a lie not to say that it has been a challenging start,” portfolio manager Anette Hjertø tells AMWatch.

Despite launching in an extremely challenging market environment, DNB Fund Multi Asset was down 4.7 percent month-to-date through March 17. The fund is down 6.3 percent since launching on February 25. “Considering the market development, the fund has delivered as expected,” says Hjertø, who is part of a three-member team responsible for managing the fund. “We would have, of course, preferred to start off with a positive return,” she adds.

DNB Fund Multi Asset employs a total of six sub-strategies across several asset classes such as equities, fixed income, and foreign exchange instruments. The sub-strategies include trend-following, minimum volatility equities, fixed-income carry, among others. DNB Fund Multi Asset does not seek to achieve market neutrality but attempts to limit exposure to traditional asset classes. “We are pleased to see that the overlaying risk framework and most, but not all, of our underlaying strategies have performed as expected,” Hjertø tells AMWatch.

The team of three consisting of Lena Öberg, Kim Stefan Anderson and Anette Hjertø is responsible for portfolio construction at DNB Fund Multi Asset, with the team deciding on the allocation to each individual sub-strategy. “The strategies are based on their expected return profile and the characteristics they provide as part of a broader portfolio,” Hjertø tells AMWatch. “The allocation is strategic and long term but not static, so underlying strategies and the allocation to these could change over time.”

Hjertø reckons that the coronavirus-fueled market turmoil could drive up investor interest in market-neutral strategies. “We have seen some extreme movements in the broader hedge fund indices, but you have to take into consideration that many of the underlaying strategies in these indices have directional positions and have followed the market in the sharp downturn we have seen,” says Hjertø. “I think that we could be entering an era when investors can benefit more from diversifying their portfolio and where the market environment provides more opportunities for market-neutral funds than what we have experienced in the past decade.”

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

Nordic CTAs Bounce Back as Trends Strengthen

The NHX CTA Index rebounded strongly in August, supported primarily by gains in currencies and equity markets. Most managers and sub-strategy groups finished the...

AI Isn’t the Transformation. Your Hedge Fund Operating Model Is.

By Ashish Shrestha, Senior Solutions Consultant at MAIA Technology: Artificial intelligence is moving quickly from experimentation towards implementation across the hedge fund industry. For...

Volt Diversified Alpha Posts Second-Best Month

Volt Diversified Alpha Fund delivered an estimated 5.8 percent gain in August, its second-best monthly performance since launching in early 2017, as its systematic...

The Lifecycle of a Trade: Where Nordic Managers Win or Lose Their Edge

Placing the trade is the easy part, but it is only as good as everything around it. The edge is rarely won at the...

Diversification is Easy to Buy, Hard to Get: The Liquid Alternatives Test

By Luc Dumontier, CIO Global Asset Management, iM Global Partner: Rarely have global portfolios carried such concentrated exposure to a single bet. US equities...

Unlocking a Third Active Lever

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Long-only active management traditionally has two levers for generating excess returns. The first...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -