The Nordic hedge fund industry features 34 funds with track records exceeding 15 years. While many of these well-established funds manage assets exceeding €100 million, the latest to reach this milestone, Calgus, is a €20 million long/short equity fund. This milestone for Calgus underscores that a high asset base is not always a prerequisite for fund longevity.
“Tenacity, along with our disciplined approach to analysis and avoiding investments we don’t fully understand, has served us well,” says portfolio manager Gustaf von Sivers, who manages the fund alongside Carl Urban and analyst Gustav Olsson. “Our fund is a Swedish value portfolio with lower risk than the broader market, managed by the same team for 15 years, all of whom also invest in and have ownership in the fund.”
“Tenacity, along with our disciplined approach to analysis and avoiding investments we don’t fully understand, has served us well.”
Gustaf von Sivers
With a concentrated and unconstrained approach to investing in Swedish equities, Calgus celebrated its 15-year anniversary on January 1, following one of its most successful years relative to its benchmark. “In 2024, Calgus fund rose by 18 percent, thus surpassing our benchmark index by as much as nine percent,” says von Sivers. “This marks one of our best years since the start 15 years ago,” he emphasizes. “The Stockholm Stock Exchange rose by nine percent including dividends. The difference in return between the stock exchange is very successful stock picking.”
“The Stockholm Stock Exchange rose by nine percent including dividends. The difference in return between the stock exchange is very successful stock picking.”
Gustaf von Sivers
Heading into 2024, the team at Calgus anticipated a transitional – “gap” – year for the stock market, “albeit with rising prices, followed by a clearly better 2025,” says von Sivers. However, 2024 turned out slightly better than expected. “The year began with high hopes of an economic upturn in Sweden and Europe. The stock market rose rapidly by 13 percent until May, and then moved sideways when the expected economic upturn did not materialize and the year closed at plus 9 percent,” summarizes the portfolio manager. “A weak Europe did not improve the mood here at home, while America surprised with a very strong economy.”
Typically maintaining a net market exposure of 70 to 110 percent, Calgus Fond has delivered an annualized return of approximately 10 percent since its inception in early 2010. Over the past decade, the fund has achieved an average annual return of 11.8 percent, while the five-year average stands at 8.4 percent. This period includes a 27.2 percent decline in 2022, which followed its strongest annual performance of 38.5 percent the previous year.
“All in all, we are cautious and want companies with stable earnings.”
Gustaf von Sivers
With the year ending on a weak note, the Calgus team anticipates challenges ahead for the Swedish stock market unless economic activity improves in Sweden, Europe, and China. “Sweden might perform relatively decently, but we are doubtful about improvements in Europe and China,” says von Sivers. “All in all, we are cautious and want companies with stable earnings.”
