Beyond operating as a media platform, HedgeNordic maintains an extensive database of Nordic hedge funds and related data. Although the data is not without limitations – particularly concerning assets under management – it still allows us to paint a reasonably accurate picture of the hedge fund industry in the Nordics. This article is the first in a short series profiling the hedge fund industries of each Nordic country, progressing from the smallest to the largest. We begin with Finland, home to the smallest hedge fund industry in the region.
According to data from Finland’s central bank, Finnish hedge funds managed €768 million in assets as of the end of May this year, with assets fluctuating between €600 million and €800 million since August of 2020. HedgeNordic’s own data indicates a slightly higher figure: Finnish hedge fund managers oversee €976 million in assets as of the end of June. The difference likely reflects broader categorization and the inclusion of assets managed in separate accounts beyond the fund level. When also factoring in three long-only funds with hedge fund-like characteristics – Asilo Argo, HCP Focus, and HCP Quant – the industry’s total assets exceed the €1 billion mark, reaching approximately €1.18 billion.
This puts the Finnish hedge fund industry firmly at the bottom of the Nordic rankings by size. Over the years, assets have consistently hovered around the €700 million level, occasionally breaching the €1 billion threshold – such as in early 2015 and mid-2018 – but never sustaining momentum significantly above it. Based on Bank of Finland data showing €768 million in assets, only further growth from funds like Mandatum Managed Futures Fund or Asilo Argo –the latter likely categorized by the central bank as an equity fund – would help push the industry more firmly past the €1 billion mark.
By size, the fund-of-hedge-funds R2 Crystal is the clear leader, managing €583 million in assets as of the end of May. The multi-asset, multi-strategy VISIO Allocator Fund follows behind with €102 million at the end of June. Systematic manager Estlander & Partners oversees €175 million across several strategies, with its flagship Alpha Trend Program managing €64 million. Asilo Argo, classified by HedgeNordic as a long-only hedge fund, runs €174 million, while the fast-growing Mandatum Managed Futures Fund follows with €37 million.
Strong Demand for Hedge Funds from Finnish Institutions
While the local hedge fund industry may be modest in size, Finnish institutional investors have developed a strong appetite for hedge funds – albeit primarily those managed abroad. The Finnish pension insurance sector alone allocates €25.8 billion to hedge funds as of the end of the first quarter of 2025. Adding €1.03 billion from the State Pension Fund of Finland, €271 million from the Aalto University Endowment, €78 million from the Telia Pension Foundation, and €16 million from the Seafarer’s Pension Fund, total institutional hedge fund allocations in Finland exceed €27 billion.
The growth in hedge fund allocations among institutional investors stands in stark contrast to the stagnation of the domestic hedge fund industry. For example, combined allocations to hedge funds by the five pension insurance providers and the State Pension Fund of Finland have risen from under €6 billion in 2010 to €13.9 billion by the end of 2015, €18.1 billion in 2020, and €26.2 billion in 2024.
Despite its small size, the Finnish hedge fund industry plays a unique role in the broader Nordic landscape. A handful of established managers continue to deliver niche and sophisticated strategies, though growth has remained modest over the years. However, the sheer scale of hedge fund allocations from Finnish institutions highlights a deep-rooted belief in the value of alternative strategies – albeit largely accessed through global players. Whether this domestic-investment gap narrows in the future will depend on local managers’ ability to scale, innovate, and capture a greater share of homegrown capital. For now, Finland remains a small but strategically interesting player in the Nordic hedge fund ecosystem.
