- Advertisement -
- Advertisement -

Taking a Step Back to Move Forward

- Advertisement -

Stockholm (HedgeNordic) – Norwegian long/short equity fund Sissener Canopus brought its net market exposure to 4.4 percent at the end of February and into negative territory in early March in response to the development of COVID-19. “This is roughly a market-neutral exposure and the lowest level since the start of Sissener Canopus in April 2012,” writes the fund founded by Jan Petter Sissener (pictured) in a letter to investors. The low exposure helped the fund navigate this month’s turbulent markets.

Sissener Canopus, a bottom-up stock-picking fund that uses a broad range of instruments to generate alpha, was down around three percent month-to-date through March 9. In contrast, the Oslo Stock Exchange fell by nearly 12 percent during the same period. On Monday, when panic that began in the oil market spread to global financial markets, Sissener Canopus ended the day down only 0.5 percent. The Oslo Stock Exchange fell by 8.6 percent on the day.

“We have reduced market exposure both through the short sale of shares with cyclical exposure and by establishing short positions in individual shares, such as Equinor. In addition, we established hedging positions in the fund by shorting the stock markets in Norway, Europe and the United States,” the Oslo-based asset manager writes in a recent update to investors. The update states that the fund will continue to maintain low exposure to equity markets, as uncertainty stemming from the coronavirus pandemic is still high.

“Our goal for Sissener Canopus is to continue to maintain a low equity exposure to protect downside risk as long as uncertainty surrounding COVID-19 is high.” The fund keeps dry powder in reserve, ready to be deployed when opportunities arise and uncertainty surrounding the coronavirus fades. “We are ready to take on more risk and buy shares when we think the time is right,” writes the update to investors. “Many companies appear very attractively priced today, and we want to take the opportunity to buy good quality companies. The correction can be a good opportunity to invest more.”

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

First Non-Swedish Family Office Investment for Protean Small Cap

Stockholm (HedgeNordic) – About one year after the successful launch of their long/short equity fund Protean Select, Pontus Dackmo and Carl Gustafsson introduced a...

Atlant Högräntefond Leads Peers on Third Anniversary

Stockholm (HedgeNordic) – Around mid-March 2021, Swedish hedge fund boutique Atlant Fonder launched a UCITS-structured fixed-income fund investing in Nordic corporate bonds, drawing from...

Rhenman Welcomes Brummer & Partners Sales Veteran

Stockholm (HedgeNordic) – After close to 18 years as an institutional sales professional at Brummer & Partners, Tom Josephson is set to join healthcare-focused...

Untapped Potential in Symmetry’s Small-Cap Portfolio

Stockholm (HedgeNordic) – Small-cap-focused hedge fund Symmetry Invest has achieved an annualized return of around 20 percent over the past five years and over...

Navigating Asia-Pacific’s Transition to Sustainable Growth

Stockholm (HedgeNordic) – Emerging markets in the Asia-Pacific region, such as China, India, Indonesia, the Philippines, Thailand and Vietnam, have experienced significant economic expansion...

The Performance of US Equities in Election Years Over the Last Century

By Daniel Ung, Kartik Chawla, and Jędrzej Miklaszewski – SPDR: The 2024 US presidential election is on the horizon, and investors are keen to...

Allocator Interviews

Latest Articles

In-Depth: Emerging Markets

Voices

Request for Proposal

- Advertisement -