- Advertisement -
- Advertisement -

Related

Nordic Fixed-Income Hedge Funds Beat Global Peers in May

Latest Report

This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

Stockholm (HedgeNordic) – The average net-of-fees return for Nordic fixed-income hedge funds for May measured 0.2 percent (92 percent reported). The NHX Fixed Income Index, up 0.7 percent in the first five months of 2018, posted gains in 23 out of the past 24 months.

Speedometer: The May performance of the NHX Fixed Income Index relative to its best and worst monthly performance since 2005. Source: HedgeNordic.

Whereas Nordic fixed-income hedge funds continued their winning streak last month, their international counterparts posted losses as a group. The Eurekahedge Fixed Income Hedge Fund Index, an equally-weighted index composed of 343 fixed-income hedge funds, fell 0.4 percent in May (78 percent reported), cutting year-to-date gains to 0.4 percent. The HFN Fixed Income Index (non-arbitrage), however, was flat last month, maintaining the gains for the year at 1.0 percent.

Approximately half of 26 members of the NHX Fixed Income Index posted positive returns for May, with Formuepleje Fokus clinching the title of the strongest performer in the fixed-income group within the Nordic Hedge Index. The fund that predominantly invests in Danish mortgage bonds returned 1.0 percent last month, taking the performance for 2018 into positive territory at 0.6 percent.

Borea European Credit gained 0.9 percent in May, delivering gains for the 27th consecutive month. The fixed-income hedge fund managed by Borea Asset Management is up 3.3 percent year-to-date, after having gained 15.7 percent in 2017 and 10.9 percent in the prior year. KLP Alfa Global Rente also climbed 0.8 percent last month, which brought the year-to-date performance to 2.4 percent. Scandinavian Credit Fund I, Nykredit MIRA, and SEB Eureka Fixed Income Relative Value returned 0.6 percent in May.

Nykredit EVIRA, a hedge fund investing in European corporate bonds, suffered the worst monthly performance since its inception in September 2017, recording a monthly loss of 5.2 percent. Nykredit EVIRA is down 7.3 percent in the first five months of the year. Midgard Fixed Income Fund, a Europe-focused hedge fund investing in a range of fixed-income securities issued in EU countries, Switzerland and Norway, retreated 2.1 percent last month, cutting year-to-date gains to 0.8 percent. Global macro fixed-income fund Nordkinn Fixed Income Macro Fund was down 0.9 percent in May, taking the 2018 performance into negative territory at down 0.1 percent.

*Performance figures for May not reported.

Picture © isak55_shutterstock

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

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

RFP: UK Investor Targets Liquid Alternatives Strategy

A large institutional investor from the UK is considering an initial allocation of $20 million to a liquid alternatives strategy, with the potential to...

AP3’s Tactical Layer: A New Dimension of Diversification

Diversification is often discussed in terms of broad asset allocation. For Jonas Thulin, the CIO of the Third Swedish National Pension Fund (AP3), diversification...

Diversifying with Gold and Silver: Why Miners Amplify Opportunity

In the institutional investor’s world, diversification is not a slogan but an ongoing pursuit. While new strategies may come and go, some diversifiers have...

SilverDome One: Building Resilience in a Correlated World

In early 2023, two Swedes who had spent six years working together at one of the world’s largest sovereign wealth funds, the Abu Dhabi...

Slimmer Nordic Lineup Still Delivers at HFM Awards

Despite the Nordic region featuring a slimmer lineup of nominees at this year’s HFM European Performance Awards compared to previous years, three Nordic managers...

More Equities, Less Diversification for Finnish Pension System

In an effort to safeguard the long-term sustainability of Finland’s pension system amid demographic pressures, new rules for private-sector earnings-related pensions are set to...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.