Stockholm (HedgeNordic) – Danish boutique Asset Advisor has officially launched its recently announced Credit Strategy. This strategy complements the firm’s existing dynamic and opportunistic multi-asset hedge fund. Asset Advisor’s Credit Strategy is focused on investing in small and mid-cap corporate bonds and will leverage the team’s expertise in actively managing credit and interest rate risks.
“We are proud to announce that Credit Strategy has officially launched! After a targeted effort and fantastic teamwork, Credit Strategy is now officially underway exactly as planned for early October,” announces the team at Asset Advisor. “This is a major milestone for us at Asset Advisor, and we are particularly pleased to be able to open with more than DKK 150 million invested from day one. We look forward to continuing this exciting journey and creating value for our investors.”
“We are proud to announce that Credit Strategy has officially launched! After a targeted effort and fantastic teamwork, Credit Strategy is now officially underway exactly as planned for early October.”
The team at Asset Advisor recognizes a gap in the Nordic credit fund market that focuses on small and mid-cap-sized corporate bonds – an area largely overlooked by the traditional asset management industry, according to Christian Sand, Partner and Senior Portfolio Manager at Asset Advisor. Founded by Per Gramstrup (pictured), Asset Advisor has been investing in this segment for over a decade through mandates for institutional insurance clients. “We believe the timing is right to open this opportunity to wealthy individuals, family offices, and other institutional investors,” Sand stated approximately two months ago when announcing the fund’s launch.
Sand emphasized that concentrating on the small and mid-cap segment in the Nordics provides a risk-adjusted premium that is superior to traditional high-yield mandates focused solely on benchmark-sized issuances. “This premium exists because we invest in small, unlisted, unrated, and first-time issuers, which requires more thorough analysis,” he explained. Sand also noted that the current higher interest rates have also made fixed income a viable alternative to bank deposits and a strong complement to equity exposure. “Lastly, we find the active management of credit and interest rate risk via financial instruments to be very rare for a credit fund.”
Asset Advisor’s credit fund complements its existing product range consisting of Asset Opportunities, which utilizes a dynamic and opportunistic multi-asset strategy that continuously evaluates risk-on and risk-off sentiment in financial markets. The team’s forward-looking approach enabled Asset Opportunities to achieve a 16 percent return in the challenging market conditions of 2022, with the fund delivering an annualized return of 6.0 percent and a yearly standard deviation of 8.6 percent since launching in late 2016.
