Not every conversation in the hedge fund world needs to revolve around alpha, Sharpe ratios, or fund flows. In the ongoing Quirky Questions series, HedgeNordic asks industry insiders a mix of offbeat, personal, and unexpected questions to reveal the people behind the industry. In this edition, we hear from Mette Østerbye Vejen, CEO of Copenhagen-based CABA Capital and one of the few women at the helm of a hedge fund firm in the Nordics. Beyond running a successful hedge fund firm, who is Mette when the markets close? We asked her to step out of the boardroom and into the Quirky Questions hot seat.

• After years in equities, you co-founded CABA to focus on fixed-income hedge funds. What’s one thing about moving into alternatives and fixed income that surprised you the most, or found most appealing?

After many years in equities, particularly small caps – which I remain deeply passionate about – I found the move into fixed income with CABA Capital to be a natural progression rather than a surprise. My husband is Chief Portfolio Manager for global inflation-linked bonds at Danske Bank, and I’ve known Carsten, the CIO of CABA, for over 25 years. So, in many ways, I’ve always been a “hangaround” in the fixed income space throughout my career.

What I’ve found most appealing is how, with the right strategy and structure, fixed income alternatives can deliver equity-like returns with a bond-like risk profile. To me, that’s the best of both worlds – combining the upside potential I’ve always loved in equities with the stability and predictability that well-structured fixed income strategies can offer.

• You shared on LinkedIn that fewer than 10 percent of your investors are women, which you found disheartening and were looking to organise a women-focused investor event. In Sweden, groups like KvinnoKapital connect female finance professionals, should Denmark have something similar, and what do you hope your event will inspire?

Yes, I absolutely believe Denmark should have something similar to Sweden’s KvinnoKapital. In fact, a few years ago I co-founded the network Women in Asset Management. We’re a small but diverse group of women working in the field – from different corners of the industry, including both legal and investment roles – and we have C-level representation from major banks, pension funds, AIFMs, and investment firms. It’s a space where we not only exchange knowledge and insights but also enjoy the camaraderie that comes from connecting with peers who share similar challenges and ambitions.

As for our investor base, it is quite diverse institutionally – ranging from pension funds, foundations, and family offices to HNWIs and, of course, ourselves. But when you look at who these investors are as individuals, the gender imbalance is striking. Fewer than 10 percent are women. And while it’s not entirely surprising – given that a EUR 100,000 minimum investment requires significant investable assets, and women statistically hold less wealth – it is still a bit disheartening.

What worries me most is the long-term effect: hedge funds like our Flex funds can enhance returns without necessarily increasing portfolio risk. If women aren’t accessing these kinds of tools, the wealth gap will continue to grow wider over time. That’s why I want to organize a women-focused investor event – not just to raise awareness, but to actively empower more women to take part in opportunities that could positively shape their financial futures. I hope such an event would inspire curiosity, confidence, and ultimately, action…A small contribution to the butterfly effect. 

• If you could shadow any female leader, investor or not, for a day, who would it be and what would you ask them?

I would love to shadow Janet Yellen. As the first woman to serve as both the Chair of the Federal Reserve and the U.S. Treasury Secretary, she represents a combination of academic insight, policy experience, and practical influence over the global economy. I would love to ask her how she navigated the fine line between economic stewardship and political pressure. In particular, I would be interested in her perspective on the current relationship between the White House and the Federal Reserve, especially regarding efforts – intentional or not – to influence monetary policy decisions. I would want to understand how she views the independence of the Fed and what advice she might offer to future leaders trying to uphold institutional integrity.

• You’ve built CABA on team expertise and transparency. What’s one habit or meeting ritual you think sets your team apart?

I am not sure we have a habit or ritual that sets us apart, but we are very fortunate that we have a team where we genially like each other and like spending time together. What defines our team is the genuine trust, respect, and camaraderie we share. I know it sounds like a cliché, but we really do operate as one team with one goal – and that mindset is reflected in the way we collaborate every day.

I will give you an example: a few weeks ago, after hours, we sat together in the office having a drink and casually discussing life, vacation plans etc. when a challenge we were facing came up. What started as a relaxed conversation quickly turned into a spontaneous brainstorming session. A colleague threw out an idea, and together we built on it – until we had a viable solution. The very next day, we mobilized and brought it to life. Every person played a crucial role; it was like solving a puzzle where each piece mattered.

It’s moments like these – unstructured, organic, and fueled by mutual respect and trust – that I believe truly set our team apart. That spirit of openness and collective ownership is at the heart of how we work as a team.

• Looking 50 years ahead, what do you think will be the next asset class or strategy no one is even talking about yet?

WAW that’s a tough one – I will rely on my stock-picking days for this answer. When I look 50 years ahead, I think some of the most important investment opportunities will continue to stem from themes we already know: a growing population, an aging population, and the long-term impacts of climate change. These are well-worn topics, but their scale and complexity will remain for years to come, creating entirely new needs – and therefore, new markets.

I believe the next major asset class or strategy will emerge from these intersections: where demographic shifts meet resource constraints, and innovation meets necessity. The edge will belong to those who can connect these long-term signals early and build investment frameworks that are both resilient and imaginative.

• Nordic investors are known for trust and transparency. What’s one thing you think the global asset management industry could borrow from the Nordic way of doing things?

At CABA Capital, we are portfolio managers of alternative investment funds structured both out of Denmark and Luxembourg, so we have had firsthand experience with different regulatory and operational models. What I really appreciate about the Danish model is the simplicity and efficiency that comes from having the AIFM and the fund administrator under the same roof. It streamlines governance, reduces friction, and enables more agile decision-making.

In contrast, Luxembourg typically operates with a separation between the AIFM and the fund administration. While that can offer certain institutional advantages, it also introduces more stakeholders – and with that, more complexity. In this setup, clear, proactive communication becomes critical, yet it’s often harder to achieve. Delays, misunderstandings, or inefficiencies can emerge simply because responsibilities are more fragmented.

What the global asset management industry could learn from the Nordic approach – beyond trust and transparency – is this emphasis on structural simplicity and accountability.  

• What’s something you’ve learned about risk that has nothing to do with investing?

I gave a speech for my nephew’s confirmation a few years ago, and I was searching for some words of wisdom to pass on to him. I came across a Chinese saying that resonated with me: If you wait too long to take a step you risk standing on one leg for the rest of your life.

Even though it can be wise to stand on one foot while considering which direction it should point, it’s important to eventually put the foot down and take the next step…and fortunately, very few decisions are irreversible, so the foot can always be lifted and pointed in a different direction.