- Advertisement -
- Advertisement -

Related

Othania to Launch All-Weather Equity Fund

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – Danish boutique asset manager Othania continues to expand its fund offering with the launch of a pure equity fund – Othania Globale Aktier – relying on its proprietary “Tiger” investment model that evaluates equity market risk on a monthly basis. The model will switch the soon-to-be-launched fund’s exposure from “offensive” equity exchange-traded funds (ETFs) to more “defensive” equity ETFs during periods of higher equity market risk.

“The investment strategy is based on our award-winning TIGER model that estimates the risk in the stock market one month ahead, a model we have been using successfully for more than six years in our other funds,” explains Vincent Dilling-Larsen, the CIO who co-founded Othania with his younger brother Christian Mørup-Larsen in early 2016. Designed by Vincent Dilling-Larsen, Othania’s proprietary “Tiger” investment model estimates whether risk levels in the stock market are rising or not for the coming month using leading indicators on economic activity, interest rates, and stock market movements.

“The investment strategy is based on our award-winning TIGER model that estimates the risk in the stock market one month ahead, a model we have been using successfully for more than six years in our other funds.”

“When the TIGER model is positive on equities, Othania Globale Aktier will invest 100 percent in a portfolio of global equity ETFs tilted towards several risk-on factors such as momentum, quality, sustainability, value, etc.,” explains Dilling-Larsen. “When the TIGER model is negative on equities – when the fluctuations in the stock market typically increase by 70 percent – then we invest 100 percent in a multi-factor global ETF equity portfolio consisting of factors such as low volatility, minimum volatility, long volatility and other defensive sectors.” Othania Globale Aktier is expected to launch in mid-June.

“When the TIGER model is negative on equities, then we invest 100 percent in a multi-factor global ETF equity portfolio consisting of factors such as low volatility, minimum volatility, long volatility and other defensive sectors.”

“2022 has been a challenging year for most equity investors and global stock returns have been challenged,” Dilling-Larsen reflects on the performance of broader equity markets so far in 2022. “If you dive into the data, the remarkable thing is not the fall in global equities,” continues the Othania founder. “It is the difference between the stock returns on defensive and offensive stock sectors.” The Euro-denominated MSCI World Minimum Volatility Index, for instance, edged down 0.8 percent in the first four months of 2022, whereas the more offensive Euro-denominated MSCI World SRI Index was down 9.5 percent and the U.S.-denominated MSCI World Momentum Index was down 16.3 percent.

“The challenge for equity investors is the difficulty to find the sectors or factors that will be the next winners. But, at Othania, we are now launching a completely innovative equity fund, to solve just that problem!”

“In recent years, equity investors should have been invested in either technology stocks or sustainable stocks to get an additional return to the one offered by the general stock market,” says  Dilling-Larsen. “2022 has been the exact opposite – now you suddenly have to allocate to equity sectors that have previously not been attractive, namely defensive and stable stocks with low fluctuations,” he continues. “The challenge for equity investors is the difficulty to find the sectors or factors that will be the next winners – and it is even harder to switch to the sectors or factors that haven’t been popular for the past several years. But, at Othania, we are now launching a completely innovative equity fund, to solve just that problem!”

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

Three Danish Hedge Funds Recognized by the Hedge Fund Journal

Three Danish hedge funds have been recognized at the 2025 Hedge Fund Journal CTA and Discretionary Trader Awards. Two funds managed by Danske Bank...

Private Equity in Transition: Challenges and Opportunities

Private equity has matured into a mainstream – if not cornerstone – allocation for institutional investors. Following years of record fundraising and valuation expansion,...

Formue Highlights Private Credit’s Role in New Economic Era

Nordic wealth manager Formue has long prided itself on delivering institutional-grade investment solutions to high-net-worth individuals. As global economic conditions shift, Formue sees an important role...

Chelonia Select Builds on Solid 2024

Stock-picking hedge fund Chelonia Select is off to a strong start in 2025 with an 8.3 percent gain through the end of May, building...

CABA Capital Expands the Flex Series

Danish fixed-income boutique CABA Capital has launched the third vintage of its leveraged, closed-end fixed income strategy: CABA Flex3. The fund aims to deliver...

Aegon AM Launches Capital Call Finance Fund

Aegon Asset Management has launched the Aegon Capital Call Finance Fund, providing institutional investors with access to the capital call finance market – a...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.