Nordic Insights: Multi Strategy Hedge Funds

Stockholm ( – Multi Strategy hedge funds have had a changing fate of popularity among investors over the last years. While the value of diversification in any investment portfolio, but especially those of large institutional investors has been well documented over the years, critics quickly pointed at extra fee layers, intransparency and a lack of flexibility as handicaps. Shifting risk to more than one fund and/or strategy in theory reduces the risk of the overall investment programme. The value in multi-strategy funds is providing the portfolio manager with the flexibility to capitalise on the best opportunities in a wider range of single- strategy funds. These can be limited in the scope of their skill set, investment opportunities and mandate.

The term „multi strategy hedge fund“ though does not always have clear edges and is colloquial used for single manager or multi manager approaches, fund of hedge funds, single managers with multiple, often inhouse strategies, managed ac- counts or simply as „a box“ that characterizes a fund that does not fit any other clear classification.

Finding an agreeable definition on the term „multi strategy hedge funds“ was therefor the first topic on the agenda of a round table discussion held in Stockholm in late 2013. Movestic Kapitalförvaltning and HedgeNordic co-hosted the discus-sion to which we were glad to gather a distinguished group of industry professionals from Sector Asset Management, Coeli Asset Management, Return Advisors, Nordea, Man, UBP Alternative investments and Alandsbanken.

We are pleased to present you an excerpt of the session in this paper. The format chosen to compose this summary intends to let the reader participate as close as possible and “listen in” to the discussion among industry professionals in their own words.

Enjoy getting some “Nordic Insights” to Multi Strategy hedge funds.

You can download the transcript of the discussion here: Nordic Insights – Multi Strat

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