Copy What Works

Stockholm (HedgeNordic) – After the successful launch of its multiple-award-winning Formue Nord Markedsneutral, Danish asset manager Formue Nord launched a sister fund employing a similar strategy in the second half of 2018. Formue Nord Fokus, which employs a similar strategy of focusing on special situations and financing small- and midcap companies, has now joined the Nordic Hedge Index.

According to Chris Albertsen, part of the five-member team at Formue Nord, the strategies of “both Formue Nord Markedsneutral and Formue Nord Fokus revolve around special situations and financing small- and midcap companies.” Both vehicles maintain beta-neutral portfolios at all times through the use of equity index futures or other derivatives. The main difference between the two funds, however, involves the time horizon for the financing solutions offered by these funds to companies in need of capital.

Formue Nord Fokus generally offers financing solutions with a maturity of at least one year, whereas Formue Nord Markedsneutral engages in transactions with shorter maturities. To account for the illiquidity of its investments, Formue Nord Fokus requires from its investors a 24-month notice of intention to redeem capital, with biannual redemption of 25 percent of the invested capital. The fund generated a cumulative return of 15.5 percent since launching in September 2018 after gaining 7.8 percent in the first four months of 2020. Formue Nord Fokus oversees about €7 million in assets under management as of the end of April.

Its sister fund, Formue Nord Markedsneutral, is the second-best performing member of the Nordic Hedge Index in the past 36 months and has stood on the podium in the “Best Nordic Multi-Strategy Hedge Fund” category at the Nordic Hedge Award for a second consecutive year. Formue Nord Markedsneutral generated an annualized return of over ten percent since launching in late 2015. Both funds are managed by a five-member team out of the Danish city of Aalborg. The team includes CEO Thøger Dam Johansen, CIO Rasmus Viggers, analyst Mikkel Hagel, analyst Mads Krarup Johansson, and junior analyst Chris Albertsen.

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