Stockholm (HedgeNordic) – After enjoying their best month on record in April – followed by the worst month on record in March, Nordic hedge funds carried April’s momentum into last month. The Nordic Hedge Index gained 1.6 percent in May (92 percent reported), cutting the year-to-date decline to 2.0 percent.
Four of the five strategy categories in the Nordic Hedge Index were in the green last month, with equity and fixed-income hedge funds leading the gains. Both equity and fixed-income hedge funds gained 2.3 percent on average in May, whereas CTAs declined 0.2 percent on average. The group of Nordic CTAs is the only strategy category in the green year-to-date. Funds of hedge funds advanced 1.3 percent as a group last month, while multi-strategy hedge funds gained 0.9 percent on average.
The dispersion between last month’s best- and worst-performing members of the Nordic Hedge Index decreased relative to the prior month. In May, the top 20 percent of Nordic hedge funds gained 5.7 percent on average, whereas the bottom 20 percent lost 1.3 percent. In April, however, the top 20 percent were up 12.4 percent on average and the bottom 20 percent lost 1.3 percent. Three in every four members of the Nordic Hedge Index with reported March figures posted gains last month. About 37 percent of Nordic hedge funds are in the green year-to-date.
Equity hedge funds dominated last month’s list of best performers in the Nordic Hedge Index for a second consecutive month. HCP Focus, a Finnish high conviction equity fund predominantly investing in companies benefiting from network effects, was last month’s best performer with a gain of 15.1 percent. Up 27.9 percent in the first five months of 2020, HCP Focus currently ranks as this year’s best-performing member of the Nordic Hedge Index.
Danish long/short equity fund Symmetry Invest was up 14.5 percent in May, reducing its year-to-date decline to 13.8 percent. Rhenman Healthcare Equity L/S is up 2.6 percent year-to-date through the end of May after gaining 10.9 percent last month. Activist investor Accendo Capital advanced 8.0 percent in May, taking its year-to-date performance further into positive territory at 14.7 percent. Danske Invest Fixed Income Global Value was up 7.4 percent in May, ending the first five months of 2020 down 2.1 percent.
The Month in Review for May can be downloaded below:
Photo by Glen Carrie on Unsplash