Although Swedbank Robur does not manage hedge funds in-house, Swedbank’s manager research team continues to find selective external hedge funds attractive for client portfolios. According to Love Nordström, Head of Manager Research at Swedbank, the team is taking a renewed look at hedge fund and multi-strategy approaches.

“We have several types today, but market-neutral and long/short, directional strategies are gaining interest,” Nordström tells Citywire Selector, referring to Swedbank’s hedge fund allocations within its Selection funds. “With the shift away from a zero-interest environment, I think hedge funds could definitely be a very good complement in a portfolio,” he emphasizes.

“With the shift away from a zero-interest environment, I think hedge funds could definitely be a very good complement in a portfolio.”

Love Nordström, Head of Manager Research at Swedbank.

Swedbank Robur has long allocated to external hedge funds through its three multi-asset portfolios, the so-called Selection funds. These funds have broad investment mandates, investing across equities, fixed income, FX, and alternatives, with the alternatives sleeve primarily focused on UCITS hedge funds. As early as 2020, Malin Hallén, Senior Portfolio Manager for Asset Allocation, noted that hedge funds were used mainly as replacements for fixed income, meaning the team preferred low-risk strategies such as equity market-neutral.

Nordström’s and his team’s renewed focus on hedge funds and multi-strategy approaches is already reflected in the portfolios. In 2024, the Selection funds added a UCITS-structured multi-strategy vehicle managed by AQR, complementing the market-neutral strategies that have long been part of their toolkit. Beyond hedge funds, the Selection funds maintain significant equity exposure to thematic and megatrend-focused strategies that identify long-term structural growth opportunities.

Nordström and his team remain focused on maintaining both flexibility and breadth in their allocations. “We aim to keep as broad a palette as possible,” he tells Citywire Selector. That palette is expanding to include semi-liquid alternatives, from private equity to infrastructure, which are slowly finding their way into the retail market. “These strategies are becoming more available for retail clients, and that’s an area we’re exploring,” Nordström tells Selector. “It’s getting a bit more complex, especially on the back end with different systems and entry limits, but it’s worth pursuing.”