- Advertisement -

Related

Robust August for Kreditfonden

- Advertisement -

Stockholm (HedgeNordic) – Stockholm based Kreditfonden newly joined the Nordic Hedge Index (NHX) in September 2016. The fund, Scandinavian Credit Fund I, which provides small and medium-sized enterprises with short-term direct equity loans, reported a   0.8% NAV  increase in August.

Investors qualifying for these profit-sharing loans can be individuals, companies or professional investors. As most investment options in the market are adapted to the needs of the average saver, several interesting investment opportunities tend to be excluded from the market for private investors, in part due to high demands on minimum investment and its lock-in effects. The objective of the fund is therefore to create availability by noting profit-sharing loans on a regulated market index, the NGM-NDX.

Scandinavian Credit Fund I provides direct lending to achieve its target, high risk-adjusted returns with low or no correlation to equities, obligations and commodities markets. It uses derivatives to manage unwanted market risks that may arise when investing in various instruments, thereby enhancing the fund’s returns. The fund hedges investments made in currencies other than the Swedish Krona. Its overall objective is to create long-term value growth for investors equivalent to, or better than, 6-10% per annum with low volatility.

In a comment to the month’s performance, Fredrik Sjöstrand, the fund’s Portfolio Manager, suggested Scandinavian Credit Fund I began August with lots of cash on hand following an unseasonably high influx in July, which it has mostly committed during the month. Sjöstrand expects lending activity to take off in September, emphasizing that the fund is not stressed by non-borrowed funds, working instead on the basis of its credit models to ensure a good diversification of the portfolio in relation to the credit risk it takes.

 

Picture: (c) everything-possible—shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

Historic Small-Cap Discount Offers Long-Term Opportunity, Not a Timing Signal

Small caps are trading at a historically wide valuation discount to large caps, creating a potentially attractive long-term opportunity even as the valuation gap...

Europe’s Sovereignty Push Could Benefit Small & Mid-Caps

European small and mid-cap equities are entering a potentially more constructive phase as Europe’s push for economic and strategic sovereignty coincides with improving domestic...

Taiga’s Long/Short Playbook for Nordic Small Caps

A first-time investor looking at the roughly 6 percent cumulative return from Nordic equities over the past two years could be forgiven for looking...

AI Has Changed the Small-Cap Equation

The AI-driven rally in mega-cap stocks has widened the performance gap between large and small caps, leaving smaller companies trailing across global equity markets....

Simplicity Completes Norron Deal

Three months after announcing the deal, Swedish asset manager Simplicity has completed its acquisition of Norron’s fund management business, taking over the management of...

Rethinking the 60/40 Portfolio

The 60/40 portfolio remains one of investing’s most recognizable conventions, even where few institutional portfolios literally consist of 60 percent equities and 40 percent...

Allocator Interviews

- Advertisement -

Voices

Request for Proposal

- Advertisement -