- Advertisement -
- Advertisement -

CARN’s Asymmetric Behaviour

- Advertisement -

Stockholm (HedgeNordic) – Oslo-based long/short fundamental equity fund CARN Long Short exhibits asymmetric performance behaviour as exemplified by the loss of 1.2 percent in the first quarter of 2020 and the quarter-to-date gain of 13 percent. Following a decline of 2.7 percent in March, CARN Long Short enjoyed its best month on record in April with an increase of 8.2 percent and advanced an additional 4.4 percent in May.

CARN Long Short is a long/short fundamental equity fund managed by a four-member team comprised of founding partner and portfolio manager Christer Bjørndal, founding partner Andreas Bomann-Larsen, senior analyst Harald Havnen and sustainability analyst Jon Audun Kvalbein. The Oslo-based team predominantly invests in sustainable Nordic medium-sized public companies.

According to Bjørndal, CARN Long Short is “a long-biased fund with a typical net exposure of 60-80 percent over time.” Commenting on how the fund’s net market exposure evolved throughout the coronavirus pandemic, Bjørndal tells HedgeNordic that “we deliberately reduced our net exposure early on as markets started to decline.” The four-member team “kept the exposure quite low during the worst period of the fall and picked it up again during the latter part as we found more interesting opportunities on the long book and our short positions had paid off.”

After gaining 13 percent quarter-to-date through the end of May, CARN Long Short’s net market exposure is “now back to the lower band at around 60 percent.” With a year-to-date return of 11.6 percent, CARN Long Short is among the ten best performing hedge funds in the Nordics in 2020. “We are pleased with our performance year-to-date,” Bjørndal tells HedgeNordic, adding that “we have had positive contributions from both our long and short book.”

“The market turbulence has offered several great new entry points into high-quality, sustainable companies that have long been on our watch list, but that we have deemed too expensive in the past.”

The market dislocation caused by the coronavirus pandemic has enabled the team at CARN Long Short to grab some attractive opportunities. “The market turbulence has offered several great new entry points into high-quality, sustainable companies that have long been on our watch list, but that we have deemed too expensive in the past,” says Bjørndal. “These are companies we have been eying from the side-lines for many years, opportunistically waiting for a correction to buy shares at less elevated valuation multiples.”

“Aside from the more fundamental portfolio adjustments, our agility has also allowed us to take smaller, opportunistic positions in companies that will benefit from Covid-19.”

CARN Long Short has also sought to capitalize on a host of new applications and businesses that can thrive during the coronavirus pandemic. “Aside from the more fundamental portfolio adjustments, our agility has also allowed us to take smaller, opportunistic positions in companies that will benefit from Covid-19,” Bjørndal tells HedgeNordic. Despite the significant increase in valuations across markets, the team at CARN Long Short has “a strong belief in our long positions to perform well over the cycle,” according to Bjørndal. “With a fundamental stock picking strategy focusing on sustainable companies, we remain increasingly upbeat on our portfolio companies and the prospects of attractive future returns.”

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

Niche Opportunities in Private Credit Amid Record Dry Powder Levels

Stockholm (HedgeNordic) – The evolution of private credit as an asset class has been remarkable, attracting increasing allocations from investors. Assets under management by...

Tidan Readies Systematic Macro Launch with Linus Nilsson

Stockholm (HedgeNordic) – Stockholm-based fund boutique Tidan Capital is broadening its suite of strategies with the upcoming launch of its systematic macro initiative in...

Chelonia to Embrace Long-Biased Strategy

Stockholm (HedgeNordic) – Despite securing a spot among the top 15 best-performing Nordic hedge funds this year as a market-neutral fund, Chelonia Market Neutral...

Nykredit Hedge Funds Battle to Reverse Downtrend in Assets

Stockholm (HedgeNordic) – Despite showing improved performance, the fixed-income hedge fund trio at Nykredit Asset Management is struggling to reverse a downward trend in...

“Boring” Short Sellers Partner with Sector for Fund Launch

Stockholm (HedgeNordic) – Renowned short seller Andrew Left has been quoted as saying that short sellers are becoming “a dying breed.” Despite the departure...

Adrigo Catapults into Top Five After Strong May

Stockholm (HedgeNordic) – Adrigo Small & Midcap L/S has surged into the top five best-performing Nordic hedge funds for the year, boasting a return...

Allocator Interviews

Latest Articles

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -