- Advertisement -
- Advertisement -

Related

Hedge Funds Dampen Aalto University Endowment’s Losses

Latest Report

- 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

Playing ‘Moneyball’ for Investors

Having managed the opportunistic hedge fund Pensum Global Opportunities under the Pensum Asset Management umbrella since 2022, Sector co-founder Peter Andersland has now established...

One Big Winner Lifts Accendo Into the Top Ten

When your portfolio holds six names, one big winner can move the needle in a major way. For Accendo Capital, September proved just that....

Slim Nordic Line-Up at HFM Awards

With Intelligence has revealed the shortlist for the HFM European Performance Awards 2025, featuring an unusually small number of Nordic hedge funds among this...

Record Gold, Rising Momentum

The NHX CTA Index gained in September 2025, supported by a broad-based trend environment. Most of the profits came from precious metals, as gold...

From Rocky Starts to Solid Returns and Milestones

Lynx Asset Management, best known for its flagship trend-following program Lynx, has in recent years expanded its product offering with the launch of Lynx...

Europe’s Infrastructure Transformation: Where the Smart Money is Going

Infrastructure is at the heart of Europe’s economic transformation. Richard Marshall, Head of Infrastructure Research at DWS, explores how subsectors like data centres, renewable...

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.