News

Ray Dalio-Inspired Fund in the Nordics

spot_img

Stockholm (HedgeNordic) – After starting a long/short equity fund under the umbrella of his family office at the beginning of 2018, Linköping-based fund manager Alexander Hyll (pictured) can now welcome external investors into Adaptive Paradigm Alpha after receiving an AIF license from Finansinspektionen earlier this year. The fund has enjoyed only positive months this year and gained 4.5 percent year-to-date through the end of May.

Inspired by Ray Dalio of Bridgewater Associates, Alexander Hyll seeks to position Adaptive Paradigm Alpha’s portfolio to capitalize on global paradigm shifts, which represent specific market dynamics that tend to persist for more extended periods of time. “We believe that the economy works like a machine, in so far that a certain stimulus or contraction has a given foreseeable effect,” explains Hyll. “By taking our understanding of the economy and putting it into numbers, we identify these cause-effect relationships, which we call paradigms, in order to find investment opportunities on which we build a portfolio with stable, reliable returns,” he describes Adaptive Paradigm Alpha’s investment philosophy.

“We identify these cause-effect relationships, which we call paradigms, in order to find investment opportunities on which we build a portfolio with stable, reliable returns.”

The efforts by governments and central banks to revive the global economy from the financial crisis of 2008, for instance, marked the beginning of a paradigm shift towards expansionary monetary policies. Adaptive Paradigm Alpha seeks to identify and tactically navigate such paradigm shifts. The fund, however, may not maintain exposure of more than 20 percent to a particular paradigm. Hyll’s investment strategy relies on a combination of fundamental quantitative analysis of global paradigms, which utilizes statistical models and artificial intelligence, and fundamental qualitative analysis.

Adaptive Paradigm Alpha predominantly invests in equity markets, but can also invest in derivative instruments for positioning and hedging purposes, in credits and funds. Alexander Hyll has been running the same strategy since starting his family office at the beginning of 2018, delivering an annualized return of 17.5 percent through the end of May this year. Commenting on the decision to start Adaptive, Hyll tells HedgeNordic that “hedge funds that are set up to fill their purpose in a portfolio construction are few and far between.”

“Adaptive Hedge Fund Management has gone from being a family office with one employee and owner to now being a registered fund manager with three employees and four owners.”

“Adaptive Hedge Fund Management has gone from being a family office with one employee and owner to now being a registered fund manager with three employees and four owners,” Hyll writes in a recent letter. Alexander Hyll remains as the main owner of the fund management company, with Gustaf Lange, Mattias Weinhandl and Tomas Bennich each owning a minority stake. Adaptive Paradigm Alpha oversees about SEK 70 million in assets under management.

 

Welcome to the Nordic Hedge Index!

close

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

Most Popular Today

Most Popular This Week

- Advertisement - spot_img

Latest Articles

Team Ress Grows with Junior PM

Stockholm (HedgeNordic) – The Stockholm-based portfolio management team picking and buying U.S. life insurance policies for Ress Capital’s alternative investment fund, Ress Life Investments,...

Down, But Not Out

Stockholm (HedgeNordic) – After years of muted performance, many discretionary and systematic macro strategies have enjoyed a breakout year so far in 2022. Other...

RAM Launches Long-Only Vehicle

Stockholm (HedgeNordic) – A new trend evident in the hedge fund industry is that of established hedge fund managers offering new “best ideas” or...

The Merge: Changing Airplane Engine Mid-Flight

Stockholm (HedgeNordic) – Last week, Ethereum, the world’s second-largest blockchain, completed “the merge,” a software update designed to significantly reduce the intensive energy consumption...

Kasper Ullegaard to Succeed Durhuus as Asgard’s CEO

Stockholm (HedgeNordic) - Birger Durhuus (pictured) will be resigning his position as CEO of Asgard Asset Management by the end of the year. Durhuus,...

Foresight, Preparation, and Conviction

Stockholm (HedgeNordic) – The market environment in 2022 was ripe for the agile, diversified and active investor, as market participants had to navigate and...