Stockholm (HedgeNordic) – Despite overseeing and assisting the launch of one of the Nordic region’s most promising hedge fund launches in the fixed-income space, SEB Investment Management has appointed Asgard Asset Management as the investment advisor of SEB Eureka Fixed Income Relative Value effective as of April 1. SEB Eureka, the best Nordic fixed-income hedge fund for two consecutive years at the Nordic Hedge Award, will embark on a process of transitioning into a feeder fund to the Asgard Fixed Income Risk Premia Fund.
“The most efficient way to carry out a smooth transition for the investors in Eureka and ARP is by gradually having Eureka invest in ARP.”
SEB Eureka’s main strategy architect, CIO Bo Michael Andersen (pictured), has been employed at Asgard Asset Management since the beginning of April in the role of Chief Investment Advisor for the Eureka fund. He will continue after the transition as a Senior Portfolio Manager to help steer the larger asset base in Asgard Fixed Income Risk Premia Fund (ARP) under the umbrella of Asgard. Independent of the Asgard-SEB agreement, Kenny Friis Gade joined Asgard as deputy CIO on March 1, thereby significantly increasing the capacity and ability to manage more assets under management in ARP. Andersen’s co-portfolio manager, Rasmus Dall-Hansen, will join Nordea Markets as a cross-currency dealer and market-maker.
Appointing Asgard Asset Management as the investment advisor for Eureka, aligning investment strategies between Eureka and Asgard Fixed Income Risk Premia, and eventually transitioning Eureka into a feeder fund has several synergies and advantages for investors in both strategies, according to SEB Investment Management. Building a stronger combined investment team and reducing “key man” dependencies in the Eureka investment team are two main advantages of the agreement. Asgard Asset Management’s investment team includes four portfolio managers and two quantitative analysts, now joined by the current CIO of Eureka.
Eureka, which “has an investment strategy very, very similar to the one of ARP,” oversees assets under management exceeding €300 million as of the end of March. The investment strategies, universe, and restrictions of the two funds are already aligned to large extent, with the transition combining the strong track records of Eureka and Asgard Fixed Income Risk Premia. As part of the process, the investment strategies of the two funds will be aligned, and Eureka will gradually transition into a feeder fund of ARP. During the second half of 2023, all investments in Eureka are expected to consist of fund units in ARP, with the fund effectively acting as a feeder fund. “The most efficient way to carry out a smooth transition for the investors in Eureka and ARP is by gradually having Eureka invest in ARP,” writes Asgard.