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Sector Sigma Nordic – short book added value in September

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Stockholm (HedgeNordic) – The Norwegian long/short equity fund, Sector Sigma Nordic, rose by 0.6 percent in September bringing performance year to date for the NOK share class to +3.4 percent. According to the funds monthly newsletter, both the short and the long book made gains during the month. Most of the positive contribution came from the short book, particularly from the fund’s position in the Danish telecom operator TDC following a price decline of 18.3 percent in September. The fund has now covered and closed that position.

In the long book, the Danish brewery company Royal Unibrew rose 13 percent on the month and was the second best profit contributor. The fund´s worst performing positions in September came in the long book following significant declines in the Norwegian fertilizer company Yara and the Swedish trucking manufacturer Volvo.

Looking forward, Jannik Arvesen, the funds CIO says in a comment on equity market valuations that ”the risk reward at current levels are poor” and that ”actual earnings and outlook statements leave room for further disappointment and potentially large share price reactions to the downside”.
By the end of the month, Sector Sigma Nordic had a net long exposure of 24.4 percent.

Picture (c) spectrumblue—shutterstock.com

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Jonathan Furelid
Jonathan Furelid
Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

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