- Advertisement -
- Advertisement -

Related

Five-Year Milestone for Nordea’s Alpha 7

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – The youngest and most conservative member of Nordea Asset Management’s Alpha family, Alpha 7 Multi Asset Fund, is celebrating its five-year anniversary at the end of May. The Alpha family, which oversees €9.6 billion as of the end of April, consists of three solutions that share a common approach of capturing risk-on and risk-off risk premia but exhibit different risk-return profiles.

Launched in late May 2018, Nordea’s Alpha 7 MA Fund aims to deliver fixed-income-like returns with limited sensitivity to equity markets. The fund is the youngest and most conservative sibling within the Alpha family, managed by Nordea’s multi-asset investment team headed by Asbjørn Trolle Hansen (pictured). The entire fund range blends risk-on premia that perform well in rising markets with risk-off premia that perform well in falling markets, reducing reliance on top-down macro calls and offering attractive risk-adjusted results less dependent on equity market movements. Each of the three solutions has a distinct risk-return target to cater to different risk-return preferences.

“In order to achieve diversification, we balance both cyclical and anti-cyclical return drivers from a broad and diversified set of 20-30 risk premia spread across strategy types and asset classes.”

“In order to achieve diversification, we balance both cyclical and anti-cyclical return drivers from a broad and diversified set of 20-30 risk premia spread across strategy types and asset classes,” explains Hansen, who heads Nordea’s Multi Asset Team consisting of 40 professionals. The team manages around €150 billion in assets, with close to €10 billion for the three-member Alpha family. “This approach has repeatedly proved its worth to investors in difficult times – such as during the Covid-19 pandemic and the more recent early 2023 bank jitters.”

“Our intention when creating the Alpha range was to provide investment solutions that can have attractive returns with lower sensitivity to equity markets and limited downside risk,” says Christian Lehr, senior investment specialist for multi-assets at Nordea, during Nordea’s weekly webinar Nordea Talks. These solutions aim to provide risk-adjusted returns and diversification to traditional asset classes by using a diversified set of risk premia, including proprietary developed alternative risk premia, according to Lehr. “We want to give investors access to equity market upside, but also provide diversification for equity market risk using defensive alternative strategies with asymmetric return profiles.”

Over its five-year history, the Alpha 7 MA Fund has generated an annualized return of 2.9 percent over its five years, operating in a period of higher-than-usual market volatility. The fund with the lowest risk-return profile edged down 2.9 percent in 2022 after achieving gains of 6.3 percent in 2021, 4.7 percent in 2020, and 4.9 percent in 2019, respectively. The fund is up 2.4 percent in the first four months of 2023. The longest-living member of the Alpha family, Alpha 10 MA Fund, which manages €4.6 billion, delivered an annualized return of 3.1 percent since late 2009. The €4.5 billion Alpha 15 MA Fund, which exhibits the highest risk-return profile in the family, has achieved an annualized return of 6.4 percent since its inception in mid-2011.

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

Beyond Renewables: Coeli Fund Taps Into the Broader Electrification Race

Earlier this year, portfolio managers Vidar Kalvoy and Joel Etzler renamed their fund from Coeli Renewable Opportunities to Coeli Energy Opportunities – a move...

Three Danish Hedge Funds Recognized by the Hedge Fund Journal

Three Danish hedge funds have been recognized at the 2025 Hedge Fund Journal CTA and Discretionary Trader Awards. Two funds managed by Danske Bank...

Private Equity in Transition: Challenges and Opportunities

Private equity has matured into a mainstream – if not cornerstone – allocation for institutional investors. Following years of record fundraising and valuation expansion,...

Formue Highlights Private Credit’s Role in New Economic Era

Nordic wealth manager Formue has long prided itself on delivering institutional-grade investment solutions to high-net-worth individuals. As global economic conditions shift, Formue sees an important role...

Chelonia Select Builds on Solid 2024

Stock-picking hedge fund Chelonia Select is off to a strong start in 2025 with an 8.3 percent gain through the end of May, building...

CABA Capital Expands the Flex Series

Danish fixed-income boutique CABA Capital has launched the third vintage of its leveraged, closed-end fixed income strategy: CABA Flex3. The fund aims to deliver...

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.