Founded in 1999, Lynx Asset Management has not only navigated but actively attempted to safeguard investor portfolios through every major market crisis in recent memory. Now celebrating 25 years managing client capital, the firm has grown into one of the largest hedge funds in the Nordics and earned its place among the world’s leading trend-following managers. With Martin Källström succeeding founder Svante Bergström as CEO, the firm continues to strengthen its edge, refining its core strategy while expanding into new, complementary systematic approaches. Källström credits the firm’s longevity to the solid foundation laid by its founders and a culture of continually pursuing innovation.

“I’ve worked closely with Svante for nearly seven years, and over that time, I’ve come to know Lynx very well,” says Källström, reflecting on his journey with the firm. “I have seen the key factors behind our success, and I have also identified areas where we can continue to improve.” One principle, however, remains central to Lynx’s philosophy: change should be incremental, not radical. “We never make radical changes to what we do. Instead, we’re committed to constant improvement through small, deliberate steps. It’s a continuous process of refinement.”

“We never make radical changes to what we do. Instead, we’re committed to constant improvement through small, deliberate steps. It’s a continuous process of refinement.”

Building on a Strong Foundation

Lynx Asset Management’s ability to grow and innovate is rooted in the strong foundation laid by Svante Bergström and his fellow co-founders. The firm’s continuity, performance, and evolution over 25 years, says Källström, “comes down to leadership – creating an environment where people thrive and innovate together.” Bergström, along with the other two founders, gave the firm and its employees a clear direction and a great starting point. “The culture at Lynx is incredibly strong,” Källström adds. “When people are happy, they stay – and that stability allows us to keep building on the same group of talented individuals over time.”

“The culture at Lynx is incredibly strong. When people are happy, they stay – and that stability allows us to keep building on the same group of talented individuals over time.”

As the largest hedge fund manager in Sweden, Lynx Asset Management occupies what Källström describes as “a bit of a unique position,” having the ability to attract top talent from a relatively small but highly skilled local talent pool. “Sweden has a strong tradition in engineering and data science education, and that’s been a real advantage for us,” he says. “The Swedish education system has served Lynx well. We’ve often been in the position to pick from the best graduates and have been able to develop that talent internally for years.”

The Evolution of the Lynx Program

With approximately US $6 billion under management, the Lynx Program is the cornerstone of Lynx Asset Management and a key player in the global trend-following universe. From the outset, the ambition has been clear: to build “the best CTA program in the world.” While traditional trend-following strategies are often seen primarily as tools for portfolio protection during equity market downturns, the Lynx Program aims higher. “Our dual goal is to deliver strong risk-adjusted returns while also providing attractive portfolio protection properties for equity portfolios,” says Källström. This objective is supported by the program’s long-standing “trend-plus” approach, which has been in place since its launch in May 2000.

“The objective has been to generate returns that are ‘trend-following’ at core, while also building complementary return streams, without sacrificing the attractive return pattern our investors seek,” reiterates Källström. Since its launch, the Lynx Program has delivered a cumulative return of 762 percent, or 9.1 percent annualized, compared to 321 percent for the MSCI World and 297 percent for the SG Trend Index. In addition to delivering equity-like returns while maintaining a negative 0.13 correlation with the MSCI World, the program also posted strong performance during major financial crises – 2000-2003, 2008, 2014, and 2022.

“The objective has been to generate returns that are ‘trend-following’ at core, while also building complementary return streams, without sacrificing the attractive return pattern our investors seek.”

This track record can be credited to the ongoing evolution of the Lynx Program. If the firm had continued relying on legacy models, performance would have been almost half of what has been achieved over the past decade. “The shift toward advanced multivariate trend-following models, which began in 2008, has been a critical factor in our success, and one of the main reasons we’ve consistently generated attractive risk-adjusted returns compared to the industry,” explains Källström. “Initially, it was about combining univariate, fairly simplistic trend-following strategies with other models that provided diversification, often with a contrarian approach,” he continues. “Today, many managers run similar strategies, and while they still generate returns, many fall far short of the performance we’re achieving with our current program.”

“If we stop improving, the success we’ve seen will likely come to a halt,” reflects Källström. “Looking back on the past 25 years only strengthens our resolve to continue evolving, focusing on research and operational enhancements. That’s what drives us to keep investing in research.” Källström still sees many opportunities for the Lynx Program to evolve going forward, such as making use of new data sources, incorporating shorter, higher-frequency data, leveraging advanced adaptive models, and expanding its investment universe. “At its core, the Lynx Program is all about trend-following, and we’re continuously refining our approach. From there, we attempt to generate alpha by integrating more sophisticated techniques with short-term strategies, machine learning, alternative data, and macro concepts.”

Beyond the Lynx Program: New Horizons for Systematic Strategies

While the Lynx Program remains the cornerstone of Lynx Asset Management, the Stockholm-based team, now with over 110 employees, is pursuing its long-term vision of becoming the world’s leading systematic manager with a handful of differentiated systematic strategies. Lynx Constellation, which leverages machine learning models, some of which are trained on trend filters forecasting the same markets as the Lynx Program, and Lynx Systematic Macro, have both been up-and-running for several years and delivering returns for investors. Another project in the works is the development of systematic equity strategies. “Currently, we’re managing three distinct hedge fund or alpha strategies, with equities representing the final pillar,” says Källström. “Over time, these strategies will offer a differentiated set of options for our investors, enabling us to channel even more resources into research and innovation.”

“All of our strategies – whether it’s Lynx Constellation or Lynx Systematic Macro – are powered by the same ongoing research which we apply in different ways. The key is that it’s not separate teams working on each program; it’s one unified team driving everything forward.”

“All of these initiatives ultimately benefit the Lynx Program, which remains our central focus,” Källström concludes. However, the benefits extend beyond just the Lynx Program. “All of our strategies – whether it’s Lynx Constellation or Lynx Systematic Macro – are powered by the same ongoing research which we apply in different ways. The key is that it’s not separate teams working on each program; it’s one unified team driving everything forward.”

Lynx’s ambition is to expand its scope over time while maintaining a sharp focus on its core strengths. By fostering close collaboration and cultivating strong, long-term relationships with clients, Lynx continues to innovate and offer more tailored solutions and differentiated return streams in a systematic manner. “We’ve learned that building these sophisticated client relationships requires clear communication about our goals as a firm,” says Källström. With Källström at the helm as CEO, Lynx Asset Management’s future vision is clear: to become a world leader in systematic strategies.

Disclaimer: Investing in funds is associated with risk. Past performance is no guarantee of future return. The value of the capital invested in the fund may increase or decrease and investors cannot be certain of recovering all of their invested capital.

This article is part of the Nordic Hedge Fund Industry Report.