- Advertisement -
- Advertisement -

Norron Alpha Shuts Down

Report: Private Markets

- Advertisement -

Stockholm (HedgeNordic) – Norron Asset Management has decided to close down one of its hedge funds, market-neutral equity fund Norron Alpha, exactly five years after launch. Norron Alpha, originating from Norron’s long-only Swedish equity fund Norron Active, is closing down due to weaker-than-expected performance and low investor demand.

“Norron has decided to wind up Norron Alpha as we believe conditions do not exist for continuing to manage the fund,” Norron Asset Management writes in a press release. “The background is that Norron Alpha has not developed as desired and due to low demand.” The unitholders of Norron Alpha can swap their Norron Alpha investment to multi-strategy hedge fund Norron Target or can sell their units.

Norron Alpha originates from Norron’s long-only equity fund Norron Active, with the long side of Norron Alpha constituting a replica of the long-only fund’s portfolio. Norron Alpha achieves market-neutral exposure by shorting the OMX Stockholm Benchmark (SBX) – a capitalization-weighted total return index designed to track the performance of the Stockholm Exchange. Norron Alpha is shorting the SBX index using total return swaps, with the short side of the fund being monitored daily to ensure the fund is market neutral.

Despite getting off to a good start after advancing around 3 percent over the last four months of 2016 and gaining an additional 4.5 percent in its first full year of operation in 2017, market-neutral Norron Alpha has generated a cumulative loss of 11.8 percent since its inception in September 2016 through the end of July this year. The fund is down 6.7 percent in year-to-date through the end of July. Norron Alpha had only SEK 5 million in assets under management at the end of last month, down from over SEK 100 million at the end of last year. Long-only Norron Active, which currently oversees SEK 3.37 billion in assets under management, has generated an annualized return of 14.7 percent in the past five years versus the annualized return of 16.9 percent delivered by its benchmark, the OMX Stockholm Benchmark Index.

Norron Alpha has been managed by fund manager Gustaf Sjögren, a co-founder of Norron. Before working at Norron, Sjögren served as an institutional broker at Handelsbanken between 1986 and 1991 and also worked as a fund manager of the Reavinst Fond at Handelsbanken Fonder. He co-founded Catella Fonder in 1998 and became a partner the same year. Sjögren was the fund manager of Catella’s Reavinsfond between 1998 and 2003, but was also a co-founder and asset manager of Catella Hedgefond until 2010. He has also been managing Norron Active since its inception in September 2011.

Photo by the blowup on Unsplash

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

Coeli Global Opportunities Shuts Down After Failing to Build Scale

Stockholm (HedgeNordic) – Coeli Global Opportunities, the long/short equity fund designed to leverage Andreas Brock’s best ideas from his two long-only equity funds, has...

Addressing Climate Impacts and Nature Loss Through Real Assets

The effects of climate change are a megatrend on a global scale, influencing the expected risk-return profile of real assets investments and the opportunity...

SEB Analyst Joins KLP to Complete PM Duo

Stockholm (HedgeNordic) – The asset management arm of Norwegian pension provider KLP has hired Frederik Ness to fill the portfolio manager role for its...

October Roller Coaster for Pensum Global Opportunities

Stockholm (HedgeNordic) – 2024 has been a year of sharp movements for Pensum Global Opportunities, an opportunistic hedge fund managed by Norwegian fund veteran...

Protean Bringing Rowing Team Discipline

Stockholm (HedgeNordic) – Following the recent addition of long-time Dagens Industri reporter Richard Bråse to its investment team, Swedish fund boutique Protean Funds has...

Dancing with Dragons

Opinion piece by Karl O. Strøm: In today’s financial landscape, a small group of powerful entities dominates stock and derivatives trading. These market giants...

Allocator Interviews

In-Depth: Megatrends

Voices

Request for Proposal

- Advertisement -