Stockholm (HedgeNordic) – Coeli Global Opportunities, the long/short equity fund designed to leverage Andreas Brock’s best ideas from his two long-only equity funds, has been shut down after less than three years in operation. The fund designed as a ‘best ideas’ strategy, with the flexibility to adjust equity exposure using index futures and other instruments, struggled to reach a level of assets under management needed for efficient operation.
An investor notice explains that “the assets under management of the Sub-Fund have over time decreased to a limit where the investment manager has issue operating the Sub-Fund in an economically efficient manner.” Despite achieving a cumulative return of 19 percent since its mid-2022 launch, declining assets due to investor withdrawals led to its liquidation. Coeli Global Opportunities faced challenges in growing its asset base, with assets under management decreasing from SEK 97 million at the end of 2022 to SEK 89.8 million by year-end 2023, and down further to SEK 83.8 million by mid-2024.
“The assets under management of the Sub-Fund have over time decreased to a limit where the investment manager has issue operating the Sub-Fund in an economically efficient manner.”
Andreas Brock joined Coeli Asset Management in 2014 to launch a concentrated equity fund investing in 25-35 high-quality businesses, which he described as “the kind of stocks you want in your children’s portfolios for the long term.” Building on the success of the first fund, Brock and co-portfolio manager Henrik Milton launched another long-only fund in mid-2022 focused on smaller companies. Simultaneously, they introduced a long/short equity fund designed to be the ‘best ideas’ product based on the two long-only funds.
As a Swedish special fund, Coeli Global Opportunities had the flexibility to maintain a more concentrated portfolio and adjust equity market exposure using index futures, options, and other instruments. Following a challenging start in the second half of 2022, when the fund declined 7.3 percent for the year, Coeli Global Opportunities rebounded with a 26 percent advance in 2023. Year-to-date through October 21 – the day of its closure – the long/short equity fund was up 1.5 percent, achieving a cumulative return of 18.8 percent since inception.
Brock and his team remain focused on managing their significantly larger long-only equity funds. The flagship BMC Global Select Fund, launched in late 2014, oversees SEK 18.5 billion in assets under management, while the newer small-cap-focused fund holds just under SEK 600 million in assets. Since its inception in late November 2014, BMC Global Select Fund has delivered an annualized return of 11.9 percent, outperforming its benchmark, the MSCI All Country World Index Net Total Return.
