Stockholm (HedgeNordic) – Two Nordic hedge fund managers have brought home awards from this year’s HFM EuroHedge Emerging Manager Awards. From the list of 15 Nordic nominees, Norwegian Borea Høyrente and Swedish Proxy Renewable Long/Short Energy won their respective categories at the award ceremony at Clothworkers Hall in London on November 16.
HFM EuroHedge Emerging Manager Awards seek to honor the best performing smaller and recently launched hedge funds in Europe. The nominees and winners are selected based on a combination of annualized returns and Sharpe ratios over the 12 months through mid-2021. The minimum fund asset size for inclusion at the HFM EU Emerging Manager Awards is $20 million and the maximum fund asset size is $500 million.
Borea Høyrente
Borea Høyrente, a fixed-income hedge fund under the umbrella of Norwegian asset manager Borea Asset Management, won the “Fixed Income: Over $100m” award category at this year’s HFM EuroHedge Emerging Manager Awards. As previously explained by portfolio manager Peer Hastrup Thorsheim, Borea Høyrente seeks to exploit “what academics refer to as the credit spread puzzle, a phenomenon where relatively safe companies (BB-rated equivalents) have to pay a higher credit spread on their loans than can be explained by expected losses and other factors.”
“We are of course delighted to have won the award, but we are even more happy with being nominated four times in the last six years,” comments portfolio manager Peer Hastrup Thorsheim on the recognition. “This shows that we deliver top risk-adjusted returns, and is a testament to our investment process and our long-term oriented client base.”
Although the primary strategy involves exploiting the credit spread puzzle, the fund has a very flexible mandate that allows to go long and short, apply leverage, vary exposure from zero to 150 percent, invest in derivatives, and engage in capital structure trades. With a year-to-date advance of 13.3 percent through the end of October, Borea Høyrente is this year’s best-performing fixed-income hedge fund within the Nordic Hedge Index.
Proxy Renewable Long/Short Energy Fund
Proxy Renewable Long/Short Energy Fund, the energy transition-focused fund managed by Swedish hedge fund manager Proxy P Management AB, was named the winner in the “Global Equity: Under $100m” category. Proxy P’s fund invests globally in the energy transition and aims to identify and invest in sustainable companies that support decarbonization and a carbon-free economy.
“On behalf of the Proxy team, I am delighted to receive the prize as best global equity fund below $100 million,” CIO Dan Lindström commented on the achievement. “We are energy specialists and realized early that a disruptive technology change was emerging where Technology advantage + Cost reduction + Regulation = Tailwind.”
The long/short equity fund is up 13.5 percent year-to-date through the end of October after gaining 14.5 percent last month, its best month since launching in late 2018. Renewable Long/Short Energy Fund, which will achieve its 3-year track record in December this year, has generated an annualized return of 42 percent since inception through October after gaining about 46 percent in 2019 and 83 percent in 2020.
Photo by Lucian Alexe on Unsplash