The Nordic hedge fund industry has reached an inflection point, with Denmark overtaking Sweden to become the region’s largest market by assets under management. While Sweden remains the regional hub in terms of the number of active hedge funds, Denmark’s rise – subtle yet significant – signals a shift in institutional strength and capital allocation within the Nordic hedge fund universe. The 2025 edition of the Nordic Hedge Fund Industry Report captures this transition, shining a light on key developments and influential players shaping the industry.

Please find the report here. Happy reading!

Sweden’s legacy is not in question as it continues to house some of the most sophisticated and longest-standing players in the space. The report opens with Lynx Asset Management, which is marking “A 25-Year Legacy of Innovation.” CEO Martin Källström reflects on the solid foundation laid by founder Svante Bergström and his co-founders, while charting a course for the firm’s future. The Lynx Program continues to be a pillar of the firm’s future, but Källström points to new horizons in systematic strategies as the next chapter in Lynx’s evolution.

Another prominent legacy in Sweden is the Nobel Foundation, established in 1900 to manage the finances and administration of the Nobel Prizes in accordance with the final will of Alfred Nobel. Ulrika Bergman, CIO of the Nobel Foundation, discusses how the Foundation’s hedge fund investments have evolved “Past Fixed Income Replacement” to become a cornerstone of the portfolio. In contrast, Serge Houles, CEO of Tidan Capital, outlines Tidan’s ambition to evolve “From One-Strategy Firm to Multi-Strategy Powerhouse,” detailing the firm’s journey toward building a scalable platform grounded in a shared investment philosophy and institutional-grade infrastructure.

Few have a closer view of developments in the Nordic hedge fund industry than Jonathan Holm and Fredrik Beyer of SEB, who lead the bank’s Prime Brokerage Services and Prime Finance Sales & Origination, respectively. In “SEB’s Front-Row View on Trends Shaping the Nordic Hedge Fund Market,” they emphasize that Nordic hedge fund managers can grow and gain relevance by capitalizing on their natural strengths and focusing on niche strategies.

Norwegians, in particular, have long had a deep understanding of commodity markets. It’s no surprise, then, that Svelland Capital – a commodity-focused asset manager behind one of the fastest-growing and best-performing Nordic hedge funds in recent years – has its roots in Norway. Tor Svelland’s approach to commodities is centered on “Mastering Supply and Demand.”

Another area of specialized expertise in the Nordics is Danish covered bonds, which has led to the emergence of a group of Danish hedge funds focused on extracting alpha from this historically secure yet complex asset class. Klaus Goth and the team at Petersen & Partners Investment Management offer an in-depth look in “Inside PPIM’s Quant-Backed Mortgage Bonds Strategy,” highlighting what sets the firm apart from the rest.

Since assuming the role of Chief Investment Officer at Apoteket’s Pension Fund in 2017, Gustav Karner has successfully steered the €1.22 billion fund to become one of Sweden’s top-performing pension funds. Karner shares “Apoteket Pension Fund’s Winning Formula,” where hedge funds act as the cornerstone in the portfolio. Across the border in Finland, the earnings-related pension system is undergoing significant reforms. Kari Vatanen, Head of Asset Allocation and Alternatives at Elo, explores the evolving regulatory landscape and addresses “Where Do Hedge Funds Fit?” as Finland’s pension system shifts towards a higher allocation to equity risk.

Speaking of equities, tech-focused fund manager Inge Heydorn seeks to uncover compelling opportunities by identifying powerful investment themes within the tech sector in his pursuit of “Riding Tech Trends in Long-Only and Market-Neutral Settings.”

While hedge funds receiving capital through the DMA structure are gaining traction in the Nordics, this model has long been a preferred choice for Caisse de Dépôt et Placement du Québec (CDPQ), Canada’s second-largest pension fund and a prominent global investor. Mario Therrien, Head of Investment Funds and External Management at CDPQ, shares insights on “The Growing Appeal of Dedicated Managed Accounts,” with François Rivard, CEO of Innocap, explaining the advantages of DMAs and the platforms through which CDPQ manages its hedge fund exposure.

The Nordic asset management industry is witnessing an accelerating wave of consolidation, particularly among boutique firms, including those with roots in the hedge fund space. In “Nordic Fund Boutiques Building Strength Through Consolidation,” we explore recent deals such as the merger of Industry Capital Partners (ICP) and Norron Asset Management, the combination of Indecap AB and PriorNilsson Fonder, and the acquisition of Borea Asset Management AS by a consortium of independent banks.

Fredrik Langenskiöld, Senior Investment Specialist for Alternative Investment Solutions (AIS) at UBP, then shares his insights on “Liquid Alternatives: A New Frontier for Hedge Fund Strategies.” The publication concludes with an assessment of the health of the Nordic hedge fund industry, examining trends in fund launches and closures.