On the back of consistent returns and heightened investor interest, stock-picking boutique Alcur Fonder will introduce a limited subscription mechanism for its flagship hedge fund starting in January. Alcur Classic, the boutique’s low-net long/short equity fund, has grown to SEK 8.2 billion as of September, more than doubling its assets since 2021.
Under a limited subscription mechanism, Alcur Fonder issues only a predetermined amount of fund units at each subscription date. Once this quota is filled, no further subscriptions are accepted. Ahead of each subscription window, the team decides whether to issue new units and, if so, the maximum amount that can be taken in. “We do this in order to continue offering our customers the opportunity to subscribe to the fund, without running the risk that the asset base grows to a level that hinders efficient management,” explains the team at Alcur Fonder.
“We do this in order to continue offering our customers the opportunity to subscribe to the fund, without running the risk that the asset base grows to a level that hinders efficient management.”
This is not the first time Alcur Fonder has turned to limited or capped subscriptions. Both Alcur Classic and the long-biased equity hedge fund Alcur Select have applied such measures in the past, underlining the firm’s focus on preserving its ability to generate returns, rather than gathering assets. The cap comes amid accelerating investor interest and the fund’s long-standing record of solid, consistent performance.
Since its launch in early 2007, Alcur Classic has employed a low-net exposure strategy to invest in Nordic equities, with disciplined portfolio risk management aimed at delivering strong risk-adjusted returns in all market conditions. The fund targets an annualized return of 4-8 percent with annual volatility of 2-5 percent. Notably, Alcur has recorded positive returns in 18 of 19 years, with only a minor dip of 0.2 percent in 2017, and delivered positive performance even in challenging markets such as 2008 and 2022. Over the past five years, the fund has achieved an annualized return of 7.5 percent and 11 percent annually on average over the past three years.
Alcur Select, the boutique’s higher-risk, higher-return long/short equity fund, also manages a significant asset base. The fund has returned an annualized 21.4 percent since launching in May 2018 and oversaw slightly more than SEK 5 billion in assets at the end of September. In addition, Alcur Fonder runs Alcur Grow, a long-only equity fund managing approximately SEK 1.4 billion. The Stockholm-based boutique has also been preparing to launch several new funds aimed at retail investors, with each product led by one of the recently recruited portfolio managers.
