Stockholm (HedgeNordic) – SEB Alternative Fixed Income has been put into liquidation effective immediately following an extraordinary meeting of shareholders that took place on March 25. “The decision to liquidate is a consequence of the continued challenging environment for the fund’s investment strategies and we do not see that this will change going forward,” writes an announcement by SEB Investment Management.
Launched in December 2011, SEB Alternative Fixed Income was a macro and relative-value hedge fund with an absolute return target, aiming to generate positive returns regardless of the direction of broader bond and stock markets. The fund had been predominantly focused on the European investment-grade credit market, and invested in corporate debt, bank and insurance debt using cash instruments and derivatives such as credit default swaps on single names and indices.
Managed by a three-member team, SEB Alternative Fixed Income employed a multi-strategy approach to credit investing to capitalize on opportunities during all stages of the credit cycle. Örjan Pettersson, who has been managing SEB Alternative Fixed Income since late January of 2015, was joined by Jonas Molin in July of the same year. Molin currently serves as Head of the Fixed Income Hedge Team at SEB Investment Management. Peter Tram joined the portfolio management team in 2018.
The fund was launched in December 2011 under the name SEB Credit Multi Strategy and was renamed into SEB Alternative Fixed Income in mid-June of 2016 when the fund’s investment focus was expanded. SEB Alternative Fixed Income, which had €145 million in assets under management at the end of January, targeted an average annual return of three percent above the risk-free rate over a three-to-five-year period. The fund generated an annualized return of 0.7 percent since inception through the end of February this year. The fund is down 1.2 percent year-to-date through March 30, which follows three consecutive years of low single-digit losses. The investors of SEB Alternative Fixed Income are expected to receive reimbursement payments in mid-April.