Stockholm (HedgeNordic) – St. Petri Capital, a Danish fund boutique, has scrapped its plans to launch a long-only European small-cap fund due to insufficient capital raised in a second attempt earlier this month. The fund boutique has made a second attempt at launching St. Petri Europe Small Cap the initial launch had been postponed in late 2022 due to challenging market conditions.
Ivan Larsen, an experienced portfolio manager with a focus on small-cap stocks at Danske Bank Asset Management, joined St. Petri Capital as a partner in April 2022 with the intention of launching St. Petri Europe Small Cap. “We have since been working hard to establish a European Small Cap Fund. We have now concluded that is not possible,” announces St. Petri Capital on Linkedin. “The product has been performing well – but being an independent asset manager boutique, we do not have the required distribution power to raise the needed money that is required by the authorities. Part of the reason is also that some key investors, unfortunately, have decided not to participate.”
“We have since been working hard to establish a European Small Cap Fund. We have now concluded that is not possible.”
The launch of the European Small Cap fund was meant to complement St. Petri Capital’s existing core offering, consisting of a thematic-focused long/short equity fund called St. Petri L/S. Managed by co-founders Michal Danielewicz and Jens Larsson, St. Petri L/S has delivered an annualized return of approximately 13 percent since launching in early 2018 after recording a 98 percent gain in 2020. The long/short equity fund gained 4.7 percent in the market conditions of 2022 and experienced a decline of 5.2 percent in the first four months of 2023. As of the end of April, St. Petri L/S oversees DKK 305 million in assets under management.
After scrapping its plans to launch St. Petri Europe Small Cap, Ivan Larsen will remain part of the St. Petri Capital organization. Additionally, St. Petri Capital has welcomed Claus Johansen as a portfolio manager and partner to lead the launch of a healthcare-focused long-only equity fund in the second half of this year.