Stockholm (HedgeNordic) – Max Mitteregger of Gladiator Fond has frequently voiced his concerns about the macroeconomic environment in recent years, pointing to the massive central bank money printing, and ever-increasing debt levels, among other developments. Mitteregger’s cautious stance, partly reflected in his fund’s low net market exposure, significantly hurt the performance of Gladiator Fond last year. His increasingly cautious stance helped long/short equity fund Gladiator Fond advance 12 percent in the first quarter of 2022.
“People think I’m always a little negative, but now all the alarm bells are ringing,” Max Mitteregger tells Swedish business magazine Dagens Industri (DI). “All alarm bells are ringing.” Mitteregger’s bearish and cautious stance stems from impending wage inflation on the back of rampant inflation and rising long-term interest rates. Russia’s war in Ukraine is also a major factor of concern for market participants, according to the money manager. “Globalization is dead now because of what is happening with Russia,” Mitteregger tells Dagens Industri.
“People think I’m always a little negative, but now all the alarm bells are ringing.”
Despite Gladiator Fond recouping some of last year’s loss of 51.4 percent, Max Mitteregger’s long/short equity fund will be merged with Adrigo Small & Midcap L/S under Adrigo’s management later this year. Following more than 17 years at the helm of Gladiator Fond, Mitteregger will continue to serve as Senior Advisor to East Capital Group’s Adrigo platform. Gladiator Fond has managed to generate an annualized return of 6.2 percent since launching in early 2005.
Although Max Mitteregger maintains a cautious view on the development of equity markets in the immediate future, he highlights three listed companies worth investing in. Both Mitteregger and his Gladiator Fond have high exposure to Swedish research-based biopharma companies Camarus and BioArctic, as well as a leading care company in the Nordics, Attendo. Gladiator Fond ended the month of March with a negative market exposure of 20 percent.