Lars Mikelsen, portfolio manager of Avanto Right Tail, runs a strategy designed to capture extreme upside events through concentrated bets on themes such as Bitcoin, nuclear power, and rare earth minerals. Following four consecutive months of strong performance, including a 6.8 percent gain in August alone, Mikelsen’s fund Avanto Right Tail (ART) has climbed into the ranks of the top five best-performing Nordic hedge funds this year, with a year-to-date return of just above 20 percent through the end of August.
Launched in May 2023, Avanto Right Tail has already doubled investors’ capital, reaching a cumulative return of more than 100 percent in just over two years. “With this month’s gain, ART has passed a milestone: more than 100 percent return since inception, which we are very proud of,” says Mikelsen. Even after several months of strong performance, he sees ample room for further upside ahead. “We see several concrete price catalysts in our positions on the horizon, and autumn is typically the strongest period for risk assets,” adds Mikelsen.
“With this month’s gain, ART has passed a milestone: more than 100 percent return since inception, which we are very proud of.”
Lars Mikelsen, portfolio manager at Avanto Capital.
“ART has so far exceeded our high expectations for this kind of strategy,” adds Avanto Capital’s managing partner, Rune Mæle. “Even though we believe that the coming months can be stellar, the fund is best suited for investors seeking differentiated returns over a horizon of three years plus.”
“ART has so far exceeded our high expectations for this kind of strategy.”
Rune Mæle, managing partner at Avanto Capital.
Avanto Right Tail currently ranks as the fifth-best performing hedge fund in the Nordic Hedge Index, building on returns of 26.6 percent in 2024 and 36.2 percent in its inaugural year. Unlike strategies that aim to avoid rare, hard-to-predict “Black Swan” events, ART deliberately seeks exposure to extreme upside scenarios. Among those benefiting from the fund’s strong returns is the world’s top-ranked chess player, Magnus Carlsen, who has backed the fund since its inception. “We are, of course, very pleased with the returns in ART so far,” adds manager Henrik Carlsen. “It might be luck, but it is very hard to get lucky that many times.”
“We are, of course, very pleased with the returns in ART so far. It might be luck, but it is very hard to get lucky that many times.”
Henrik Carlsen, portfolio manager at Avanto Capital.
The fund typically maintains a concentrated portfolio of three to five themes, with current exposures spanning digital assets such as Bitcoin, rare earth minerals, nuclear power, cannabis, and selected “Special Situations.” The high-conviction fund advanced in August despite Bitcoin falling roughly seven percent and headwinds from negative currency effects. Gains were driven by a revaluation of the cannabis sector and increasing investor attention on rare earth elements. Individual names within the fund’s “Special Situations” bucket also performed strongly, while the nuclear power sector contributed positively despite ART’s largest position, ASP Isotopes, dropping sharply on the final trading day of the month.
“Much has gone right in the portfolio over the past few months, and after five consecutive months of gains, it is easy to feel a touch of vertigo,” Mikelsen reflects. “But as of early September 2025, it is difficult to be negative about the outlook,” he notes. “A quick count suggests no fewer than 10-12 small and large “catalyst events” we expect over the next 2-3 months.” While Mikelsen acknowledges that many of these catalysts already have expectations priced in, “final resolutions will likely give share prices an additional lift.”
