Stockholm (HedgeNordic) – Hedge funds are not usually known for their longevity, yet the Nordic hedge fund industry stands out with several long-standing players. Danske Invest Fixed Income Strategies Fund has become the Nordic hedge fund industry’s tenth fund with a track record surpassing 20 years. With over €1 billion in assets under management, this hedge fund is one of the largest and longest-running vehicles in the Nordic hedge fund space.

Under the leadership of Michael Petry, Danske Bank Asset Management has developed a strong suite of three relative-value fixed-income hedge funds, with Danske Invest Fixed Income Strategies Fund serving as the flagship. “All three funds aim to deliver a positive, absolute return, regardless of the direction of the financial markets, relying on strategies that seek to capitalize on interesting patterns and discrepancies in fixed income and bond market pricing,” Petry previously explained. The oldest and largest of the trio, Danske Invest Hedge Fixed Income Strategies, focuses on exploiting relative and absolute mispricings in fixed-income markets across Scandinavia, the U.S. and the Eurozone, with a primary focus on Scandinavia.

“All three funds aim to deliver a positive, absolute return, regardless of the direction of the financial markets, relying on strategies that seek to capitalize on interesting patterns and discrepancies in fixed income and bond market pricing.”

Michael Petry, Head of Fixed Income Hedge Funds at Danske Bank Asset Management.

As of the end of last year, the fund managed €1.3 billion in assets and has delivered an annualized return of 10.1 percent over its two-decade history. After weathering a high single-digit decline in 2022 partly due to the unexpectedly aggressive interest rate hikes, Danske Invest Hedge Fixed Income Strategies staged a strong recovery with a 21.3 percent gain in 2023, followed by an additional 13.7 percent in 2024. This solid performance drove assets from under €800 million in 2022 to over €1.3 billion in 2024, prompting the fund to soft close to new subscriptions.

“First and foremost, over the years, we have benefited from a strong and consistent team of portfolio managers.”

Michael Petry, Head of Fixed Income Hedge Funds at Danske Bank Asset Management.

Michael Petry, Head of Fixed Income Hedge Funds at Danske Bank Asset Management and the key figure in the fund’s journey since 2005, attributes its success to three primary factors. “First and foremost, over the years, we have benefited from a strong and consistent team of portfolio managers,” says Petry. In addition to Petry, the team includes Tom Rosenkrans (since 2007), Carsten Cilieborg (since 2010), and Thomas Ryaa Rasmussen (since 2015). “Secondly, we have developed a diverse range of strategies rooted in our proprietary in-house models. Finally, our prudent approach to risk management has been instrumental in achieving our long-term success,” concludes Petry.