After eight years on the brokerage and trading desk at Pareto Securities, Jonas Kvalheim has decided to move back to his hometown, Trondheim and launch his own long/short equity hedge fund. Derived from the original name of Trondheim, Nidaros Equity Fund was launched in October 2025 and currently manages NOK 49 million in assets under management.
The one-man shop aims to use its fundamental bottom-up approach to manage the portfolio’s core long positions, in combination with selective short positions and index derivatives to adjust the risk within the portfolio. With a leaner asset base than other comparable hedge funds, the fund seeks to enhance its agility and ability to build relatively larger positions in smaller companies, with a primary focus on the Nordic equity markets.
To generate alpha, Nidaros Equity Fund utilizes a concentrated long portfolio based on high-conviction investment ideas. “I typically have 5 to 10 high-conviction investments that represent approximately 60 to 80 percent of the assets under management,” says Jonas Kvalheim. To achieve this, Kvalheim focuses on companies with revaluation potential and substantial growth opportunities.
“I typically have 5 to 10 high-conviction investments that represent approximately 60 to 80 percent of the assets under management.”
To find these companies, Kvalheim uses a bottom-up approach emphasizing the importance of the underlying fundamentals of the companies. “It’s important that the companies have a healthy balance sheet, with a low net debt-to-EBITDA ratio and a high equity ratio,” Kvalheim says. The holding period for these long positions can vary widely, ranging from intraday trades to positions intended to be held for several years. “I can hold companies for several years because I am so bullish on them,” Kvalheim notes.
Nidaros Equity Fund mainly uses its short book and index derivatives to quickly adjust the risk of the portfolio. To create an edge, the fund aims to capitalize on its agility. “Given the leaner asset base, it’s easier for me to use derivatives on short notice to reduce the risk of the portfolio,” argues Kvalheim. This gives Nidaros Equity Fund the ability to adjust its risk without liquidating its positions and better withstand macro noise, Kvalheim explains. The short book and index derivatives also play an important role in adjusting gross and net exposure in line with the fund’s objectives. “The portfolio can have a gross exposure of 120 percent, but never a net exposure above 100 percent,” Kvalheim explains.
“Given the leaner asset base, it’s easier for me to use derivatives on short notice to reduce the risk of the portfolio.”
While the scope of Nidaros Equity Fund’s mandate is global, the fund follows a clear order for where it looks for investment opportunities. “I always try to find my investments in Norway,” says Kvalheim. If there are no suitable companies within the limited Norwegian equity market, Nidaros Equity Fund will start to look elsewhere. “I’ll try to find peers in Scandinavia, and if there are none, I’ll broaden my focus to Europe,” says Kvalheim. The reason for this, Kvalheim argues, is the fund’s approach to avoiding investments in areas of global macro uncertainty. “I always look for companies locally to avoid currency movements and the uncertainty that follows,” explains Kvalheim.
“I’ll try to find peers in Scandinavia, and if there are none, I’ll broaden my focus to Europe. I always look for companies locally to avoid currency movements and the uncertainty that follows.”
In area where Nidaros Equity Fund sees an opportunity to outperform its peers is in its ability to take relatively larger positions in smaller companies. “The fund can take relatively large positions in smaller companies compared with other hedge funds,” explains Kvalheim. Kvalheim argues that this gives the fund an edge in its pursuit of alpha. The combination of local market knowledge, selective stock picking and active risk adjustment forms the backbone of Nidaros Equity Fund’s strategy, as Kvalheim looks to make the fund punch above its weight.
