- Advertisement -
- Advertisement -

Related

Hedge Funds Dampen Aalto University Endowment’s Losses

Report: Alternative Fixed Income

- Advertisement -

Stockholm (HedgeNordic) – Aalto University’s endowment fund incurred a loss of 5.1 percent during the first half of 2022 amid wider market turmoil, as hedge fund investments helped dampen losses.

The endowment fund’s “alternative risk” building block, a portfolio of hedge fund investments accounting for 20 percent of the €1.29 billion endowment portfolio, returned 11.1 percent in the first six months of 2022. “Our hedge funds had a terrific H1 across most strategies,” Lauri Ström, Portfolio Manager at Aalto University Endowment, writes on LinkedIn.

“Our hedge funds had a terrific H1 across most strategies.”

The Aalto University endowment builds its €1.29 billion portfolio around several risk-based building blocks, including interest rate risk, credit risk, equity risk, and alternative risk. The “alternative risk” building block features market-neutral diversifying strategies such as trend following, systematic risk premia, equity market-neutral, global macro, relative value and arbitrage strategies, among others. The Aalto University endowment has a minimum target allocation of 10 percent to alternative risk strategies, with the exposure sitting at 20.1 percent as of the end of June.

“Alternative risk provided valuable diversification with positive contribution to return.”

“The first half of the year was dominated by inflation and growth risks, both amplified by the war in Ukraine,”  the team running the Aalto University endowment writes in an update on the first half of the year. “This led to negative returns on both equity and bond markets. As a result, the first half of 2022 was one of the worst ever recorded for traditional investment portfolios,” the update continues. The endowment fund’s loss of 5.1 percent mostly stems from its exposure to equity risk. “Both interest rate and credit risk had small negative contribution as well,” writes the Aalto University endowment team led by Head of Investments Iivo Paukkeri. “Alternative risk provided valuable diversification with positive contribution to return.”

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

Capital Four Reaches Hard Cap for Fifth Private Debt Vintage

Copenhagen-based credit specialist Capital Four has reached the hard cap of €3 billion for its fifth private debt vintage, Private Debt V – Senior....

Othania Introduces UCITS Version of All-Weather Strategy

Danish boutique asset manager Othania has assumed management of the UCITS-structured fund ØU Invest Balance KL, which will be rebranded as Othania Stabil UCITS...

Hilbert Expands Asset Management Arm

Hilbert Group, which operates an asset management business specializing in hedge funds focused on digital assets, has completed the acquisition and integration of digital...

Elementa Reaches All-Time High on 10th Anniversary

Elementa, the long/short equity fund managed by Marcus Wahlberg, was named “Rookie of the Year” at the 2015 Nordic Hedge Award, recognizing it as...

Private Markets and Equity Exposure Top Priorities for Nordic Investors

Nuveen has published the results of its annual Global Institutional Investor Survey, revealing that 58 percent of the 40 surveyed Nordic investors plan to...

Anders Augusén Joins Brummer & Partners to Lead New Pod

Brummer & Partners is preparing to launch a new pod within its Brummer Multi-Strategy, focusing on a Scandinavian-oriented discretionary fixed-income relative value and macro...

Allocator Interviews

In-Depth: Megatrends

Voices

Request for Proposal

- Advertisement -