Stockholm (HedgeNordic) – As part of Carnegie Fonder’s takeover of hedge fund boutique Nordic Cross Asset Management, one Nordic Cross hedge fund has been liquidated, a second one has been merged into a Carnegie fund, and a third one continues its journey under the Carnegie brand. The fourth Nordic Cross hedge fund, Nordic Cross Stable Return, will be merged into the long/short equity fund of fellow Swedish fund manager Norron AB.
“At the beginning of the summer, it was communicated that the intention was to have Carnegie Fonder take over the management of all Nordic Cross funds,” writes an announcement by Nordic Cross. “After discussions between the parties, however, it has been concluded that Norron is a more suitable recipient of the Fund, as the strategies of the two funds are very similar.” Nordic Cross Stable Return will merge with Norron Select, where Norron Select is the receiving fund.
“After discussions between the parties, however, it has been concluded that Norron is a more suitable recipient of the Fund, as the strategies of the two funds are very similar.”
Nordic Cross Stable Return, with SEK 491 million in assets under management at the end of September, has been employing a multi-strategy approach that featured different equity sub-strategies, as well as fixed-income and derivatives mandates. The equity and fixed-income strategy buckets could each represent between 30 percent to 70 percent of the portfolio, with the bulk of the return coming from the equity part of the portfolio composed of three sub-strategies: market-neutral, long/short, and event.
Categorized as a long/short equity fund, the receiving fund, Norron Select, also relies on a portfolio structure of sub-strategies such as long/short market-neutral, corporate bonds and alpha picks, among others. The fund managed by Marcus Plyhr edged down 5.2 percent over the first nine months of 2022.
Provided that the merger is carried out according to plan, the existing investors in Nordic Cross Stable Return will become investors in Norron Select from December 16. The completion of the merger will be preceded by a 30-day notice period when the fund is closed for purchases – while allowing existing investors to sell fund units – as well as five working days when the fund will be completely closed for both purchases and redemptions. The agreement to merge Nordic Cross Stable Return into Norron Select marks the end of hedge fund boutique Nordic Cross Asset Management.
