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Pareto Merges its Alpha Fund

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Stockholm (HedgeNordic) – Pareto Asset Management has decided to merge its long/short equity fund Pareto Nordic Alpha into long-only equity fund Pareto Nordic Equity. Both funds are managed by Christian Nygaard and Ole Jørgen Grøneng Nilsen. The focus on one fund, instead of two, is expected to enhance the team’s and the firm’s utilization of resources.

Pareto Nordic Alpha advanced 10.3 percent in the first three months of 2023 to end the first quarter among the top three best-performing members of the Nordic Hedge Index. The first-quarter advance follows a decline of 13.2 percent in the challenging market conditions of 2022. Pareto Nordic Alpha has been running a long/short equity strategy with a concentrated portfolio of 20 to 25 long positions and five to ten short positions. The hedge fund could also invest in fixed-income instruments with an investment grade rating, as well as use derivatives for both hedging and investment processes.

Pareto Nordic Alpha had about €15 million in assets under management at the end of March, compared to €107 million for Pareto Nordic Equity. The merger of Pareto Nordic Alpha into Pareto Nordic Equity is expected to be completed on May 31 and has already been approved by Pareto’s corresponding Board of Directors and the supervisory authority in Luxembourg, CSSF. While Pareto Nordic Equity charges a higher annual management fee compared to Pareto Nordic Alpha, the long-only fund has no performance-related fees and thereby offers a cheaper fee structure for incoming investors.

Pareto Asset Management runs two additional long/short equity funds that are part of the Nordic Hedge Index. Both Pareto Total and Pareto Nordic Omega are among the first quarter’s five best-performing Nordic hedge funds. Nordic-focused Pareto Nordic Omega, also managed by Christian Nygaard and Ole Jørgen Grøneng Nilsen, ended the first quarter up 10.2 percent. Pareto Total, a long-biased equity long/short fund focusing on global large- and mega-cap stocks, ended the first three months of 2023 up 16.9 percent. Pareto Total, managed by Bård Johannessen and Oddmund Enæs, oversees NOK 6.9 billion or a little over €600 million in assets under management.

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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

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