country_hedgenordic_q3_nov2

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Q3

The Nordic Hedge Fund Space Country by Country Report


www.hedgenordic.com - April 2018

www.hedgenordic.com - April 2018

Active Hedge Funds

Atlant Edge

104 99

Swedish Hedge Fund Industry Up 0.95% in Q3 The Swedish hedge fund industry was the second-best performing in the third quarter of 2018 among the four Nordic countries. Speaking of performance, Swedish hedge funds delivered the third-highest 12-month compounded return. When looking at risk-adjusted returns, the Swedish hedge fund industry also had the third-highest 12-month Sharpe ratio in the Nordics. Hedge funds are generally known for providing uncorrelated returns, and the 12-month correlation between the returns generated by Swedish hedge funds and the S&P 500 stands at 0.23. This was the third-lowest correlation among the four Nordic hedge fund industries. Last but not least, performance dispersion between the top 30 percent and bottom 30 percent was the third-lowest in the Nordics, whereas the 12-month volatility was the second-lowest among the four industries.

HedgeNordic's Ranking Pie

2017

Q1

Q2

Q3

Q3 Performance Dispersion

Q3 Return

12-Month Correlation with S&P 500

PAGE

2

Adrigo Small & Midcap L/S

7.7%

Norron Select

7.3%

0.23

Performance dispersion in Q3 2018

7.0%

0.45

Coeli Altrua Macro Coeli Absolute European Equity

Q4

Q1

Adrigo Small & Midcap L/S

Q2

12-Month Sharpe ratio

Alcur Select OPM Multi Hedge Hamiltonian Global Credit Opportunity

Q4

4.5%

Bottom 30%

-2.4%

5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00%

3.37% 2.38% 1.84% 1.01%

Q3 2018 return

1.30%

12-month return

Annualized 24-month Annualized 36-mont h Annualized 60-mont h return return ret urn

NHX Sweden

Largest Swedish Hedge Funds

Nordic Cross Credit Edge

Q3

Top 30%

Performance Comparison: Swedish Hedge Funds versus NHX Composite 12-Month Return

12-Month Volatility

Nordic Cross Small Cap Edge IAM Nordic Multi Strategy Fund

8.2%

Average 12-month correlation with the S&P 500

2018

Nordic Cross Stable Return Nordic Cross Total Return Bond Fund

Coeli Absolute European Equity

Average 12-month Sharpe Ratio

Recent Hedge Fund Launches in Sweden Volt Diversified Alpha Fund

66.3%

12.0%

Rhenman Healthcare Equity L/S 10.6%

in Q2

SWEDEN

Fraction of hedge funds with positive returns in Q3 2018

Top performing hedge funds in Q3 2018

2019

Sep 2018, EUR

1 YoY Δ

Brummer Multi-Strategy

3.96 Billion

+11%

Nordea 1 - Alpha 10 MA Fund

2.35 Billion

+88%

SEB Asset Selection

1.22 Billion

-6%

NHX Composite

Hedge Hunds by Strategy Multi-Strategy 18 Fixed-income 11

CTA 14 104

Equities 43 Fund of funds 18 PAGE

3


www.hedgenordic.com - April 2018

www.hedgenordic.com - April 2018

Active Hedge Funds

34 DENMARK Danish Hedge Fund Industry Up 2.03% in Q3

HedgeNordic's Ranking Pie

The Danish hedge fund industry was the best performing in the third quarter of 2018 among the four Nordic countries. Speaking of performance, Danish hedge funds delivered the highest 12-month compounded return. When looking at riskadjusted returns, the Danish hedge fund industry had the highest 12-month Sharpe ratio in the Nordics. Hedge funds are generally known for providing uncorrelated returns, and the 12-month correlation between the returns generated by Danish hedge funds and the S&P 500 stands at 0.35. This was the highest correlation among the four Nordic hedge fund industries. Last but not least, performance dispersion between the top 30 percent and bottom 30 percent was the lowest in the Nordics, whereas the 12-month volatility was the second-highest among the four industries.

31

in Q2

Q1

Q2

Q3

Q3 Performance Dispersion

Q3 Return

4

6.1%

Formuepleje Penta

5.1%

Othania Invest A/S

4.5%

Formuepleje Epikur

4.3%

88.2%

0.35

Performance dispersion in Q3 2018

4.8%

1.17

Top 30%

4.4%

Bottom 30%

-0.3%

Performance Comparison: Danish Hedge Funds versus NHX Composite 7.37%

7.00%

12-Month Correlation with S&P 500

12-Month Return

7.08%

6.27%

6.00% 5.00%

4.28%

4.00% 3.00% 12-Month Volatility

12-Month Sharpe ratio

2.00%

2.07%

1.00% 0.00%

SEB Eureka Fixed Income Relative Value

Q1

Asgard Fixed Income Risk Premia

PAGE

Asgard Credit Fund

8.00%

2018 Q4

6.2%

Average 12-month correlation with the S&P 500

Q3 2018 return

Q2

Yggdrasil Multi-Asset Fund Innolab Capital Index Danske Invest Global Cross Asset Volatility Danske Invest Fixed Income Global Value

Annualized 24-month Annualized 36-month Annualized 60-month return return return

Largest Danish Hedge Funds

Calculo Evolution Fund

Q3

12-month return

NHX Denmark

Nykredit EVIRA

2017

Nykredit EVIRA Hedge Fund

Average 12-month Sharpe Ratio

Recent Hedge Fund Launches in Denmark CABA Hedge

Fraction of hedge funds with positive returns in Q3 2018

Top performing hedge funds in Q3 2018

Q4

2019

Sep 2018, EUR

1 YoY Δ

1.07 Billion

-8%

Formuepleje Safe

793.5 Million

+22%

Formuepleje Penta

642.9 Million

+22%

Danske Invest Hedge FI Strategies

NHX Composite

Hedge Hunds by Strategy Multi-Strategy 12 Fixed-income 16

CTA 2

34

Equities 3 Fund of funds 1 PAGE

5


www.hedgenordic.com - April 2018

www.hedgenordic.com - April 2018

Active Hedge Funds

19 FINLAND Finnish Hedge Fund Industry Down 0.20% in Q3

HedgeNordic's Ranking Pie

The Finnish hedge fund industry was the worst performing in the third quarter of 2018 in the four Nordic countries. Speaking of performance, Finnish hedge funds delivered the lowest 12-month compounded return. When looking at risk-adjusted returns, the Finnish hedge fund industry also had the lowest 12-month Sharpe ratio in the Nordics. Hedge funds are generally known for providing uncorrelated returns, and the 12-month correlation between the returns generated by Finnish hedge funds and the S&P 500 stands at 0.16. This was the second-lowest correlation among the four Nordic hedge fund industries. Last but not least, performance dispersion between the top 30 percent and bottom 30 percent was the second-lowest in the Nordics, whereas the 12-month volatility was the highest among the four industries.

19

in Q2

Q2

Q3

Q4 Evli Factor Premia

PAGE

6

9.7%

E & P Alpha Trend II

3.2%

E & P Alpha Trend

1.5%

VISIO Allocator Fund

0.8%

HCP Black Fund

0.5%

31.6% Performance dispersion in Q3 2018

6.1%

-0.21 0.16

Q3 Performance Dispersion

Q3 Return

Top 30%

3.1%

Bottom 30%

-3.0%

Average 12-month correlation with the S&P 500

Performance Comparison: Finnish Hedge Funds versus NHX Composite 5.00% 4.00%

12-Month Correlation with S&P 500

12-Month Return

2.99%

3.00% 2.00% 1.00% 0.00%

12-Month Volatility

12-Month Sharpe ratio

-1.00%

-0.32%

-2.00% -3.00%

2018 Q1

HCP Focus Fund

Average 12-month Sharpe Ratio

Q3 2018 return

Q1

Q2

Q3

12-month return

Annualized 24-month Annualized 36-mont h Annualized 60-mont h return return ret urn

NHX Finland

Q4

NHX Composite

Largest Finnish Hedge Funds

Northern Star MG Relative Value

2019

-0.32%

-1.10%

-1.75%

Recent Hedge Fund Launches in Finland

2017

Fraction of hedge funds with positive returns in Q3 2018

Top performing hedge funds in Q3 2018

Jun 2018, EUR

1 YoY Δ

Danske Invest Europe L-S Dynamic

258.0 Million

-55%

VISIO Allocator Fund

221.1 Million

+40%

Estlander & Partners Alpha Trend

88.6 Million

-9%

Hedge Hunds by Strategy Multi-Strategy 5 Fixed-income 0

CTA 5

19

Equities 4 Fund of funds 5 PAGE

7


www.hedgenordic.com - April 2018

www.hedgenordic.com - April 2018

Active Hedge Funds

18 NORWAY HedgeNordic's Ranking Pie

Norwegian Hedge Fund Industry

Up 0.54% in Q3

The Norwegian hedge fund industry was the third-best performing in the third quarter of 2018 in the four Nordic countries. Speaking of performance, Norwegian hedge funds delivered the second-highest 12-month compounded return. When looking at risk-adjusted returns, the Norwegian hedge fund industry had the second-highest 12-month Sharpe ratio in the Nordics. Hedge funds are generally known for providing uncorrelated returns, and the 12-month correlation between the returns generated by Norwegian hedge funds and the S&P 500 stands at 0.12. This was the lowest correlation among the four Nordic hedge fund industries. Last but not least, performance dispersion between the top 30 percent and bottom 30 percent was the highest in the Nordics, whereas the 12-month volatility was the lowest among the four industries.

17

in Q2

2016

Q1

Q2 Titan Opportunities

PAGE

8

Q3

Q4

Borea Global Equities

6.8%

Titan Opportunities Fund

5.9%

Mjeltevik Invest

4.6%

KLP Alfa Global Rente

2.9%

Incentive Active Value Fund

2.8%

72.2%

Average 12-month Sharpe Ratio

0.12

Performance dispersion in Q3 2018

9.0%

0.78

Q3 Performance Dispersion

Q3 Return

4.6%

-4.4%

Performance Comparison: Norwegian Hedge Funds versus NHX Composite 7.00% 12-Month Return

6.59%

6.43%

5.78%

6.00%

12-Month Correlation with S&P 500

Top 30%

Bottom 30%

Average 12-month correlation with the S&P 500

5.00% 4.00%

2.97%

3.00% 2.00% 12-Month Volatility

12-Month Sharpe ratio

1.00% 0.00%

0.52% Q3 2018 return

Recent Hedge Fund Launches in Norway NOMA Fokus

Fraction of hedge funds with positive returns in Q3 2018

Top performing hedge funds in Q3 2018

Q3

NHX Composite

Largest Norwegian Hedge Funds Hedge Hunds by Strategy

No hedge fund launches in 2017 and 2018

Q2

Annualized 24-month Annualized 36-mont h Annualized 60-mont h return return ret urn

NHX Norway

2017 Q1

12-month return

Q4

2018

Sep 2018, EUR

1 YoY Δ

AAM Absolute Return Fund

312.2 Million

+36%

Borea European Credit

198.7 Million

+42%

KLP Alfa Global Rente

185.9 Million

+5%

Multi-Strategy 3 Fixed-income 2

CTA 1

18

Equities 12 Fund of funds 0 PAGE

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