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Q4

The Nordic Hedge Fund Space Country by Country Report

www.hedgenordic.com - April 2018

SWEDEN Swedish Hedge Fund Industry Down 3.6% in Q4 The Swedish hedge fund industry was the second-best performing in the fourth quarter of 2018 among the four Nordic countries. Speaking of performance, Swedish hedge funds delivered the second-highest 12-month compounded return. When looking at risk-adjusted returns, the Swedish hedge fund industry also 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 Swedish hedge funds and the S&P 500 stands at 0.26. 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 lowest among the four industries.

HedgeNordic's Ranking Pie Q4 Performance Dispersion

Q4 Return

12-Month Correlation with S&P 500

12-Month Return

12-Month Volatility

12-Month Sharpe ratio

Recent Hedge Fund Launches in Sweden Volt Diversified Alpha Fund

2017

Q1

Q2

2018

Nordic Cross Stable Return Nordic Cross Total Return Bond Fund

Q3

Coeli Altrua Macro Coeli Absolute European Equity

Q4

Q1

Nordic Cross Small Cap Edge IAM Nordic Multi Strategy Fund

PAGE

2

Adrigo Small & Midcap L/S

Q2

Nordic Cross Credit Edge

Q3

Q4 ia

2019

Alcur Select Proxy Long/Short Energy OPM Multi Hedge Hamiltonian Global Credit Opportunity Proxy Global Energy Proxy Renewable Long/Short Energy

www.hedgenordic.com - April 2018

Fraction of hedge funds with positive returns in Q4 2018

Top performing hedge funds in Q4 2018

Active Hedge Funds

101 104 in Q3

Volt Diversified Alpha Fund

11.2%

Atlant Protect

5.8%

DNB TMT Absolute Return

4.2%

Pacific Precious

3.2%

Peak Equity Alpha

2.7%

19.8%

Average 12-month Sharpe Ratio

Performance dispersion in Q4 2018

10.8%

-0.12 0.26

Top 30%

1.2%

Bottom 30%

-9.6%

Average 12-month correlation with the S&P 500

Performance Comparison: Swedish Hedge Funds versus NHX Composite 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0%

2.0% 0.7% -0.3%

-3.6% Q4 2018 return

-3.0% 12-month return

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

NHX Sweden

Largest Swedish Hedge Funds Dec 2018, EUR

1 YoY Δ

Brummer Multi-Strategy

3.62 Billion

-3%

Nektar

1.19 Billion

-52%

SEB Asset Selection

1.10 Billion

-25%

NHX Composite

Hedge Hunds by Strategy Multi-Strategy 18 Fixed-income 12

CTA 13 101

Equities 42 Fund of funds 16 PAGE

3

www.hedgenordic.com - April 2018

DENMARK Danish Hedge Fund Industry Down 3.1% in Q4

HedgeNordic's Ranking Pie

The Danish hedge fund industry was the best performing in the fourth quarter of 2018 among the four Nordic countries.

Speaking of performance, Danish hedge funds delivered the highest 12-month compounded return. When looking at risk-adjusted 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 second-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.

Q4 Performance Dispersion

Q4 Return

12-Month Correlation with S&P 500

12-Month Return

12-Month Volatility

12-Month Sharpe ratio

Recent Hedge Fund Launches in Denmark 2018

CABA Hedge

SEB Eureka Fixed Income Relative Value

Calculo Evolution Fund

Nykredit EVIRA

2017

Q1

Q2

Q3

Q4

Q1

Asgard Fixed Income Risk Premia

PAGE

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Q2

Q3

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

Q4

2019

HP Hedge Fixed Income Investin Othania Etisk FormuevĂŚkst

www.hedgenordic.com - April 2018

Active Hedge Funds

36

Fraction of hedge funds with positive returns in Q4 2018

Top performing hedge funds in Q4 2018

34

in Q3

Formue Nord Markedsneutral

4.2%

Calculo Evolution Fund

3.0%

HP Hedge Danish Bonds

0.7%

Formuepleje Fokus

0.5%

DI Eastern Europe Absolute

0.5%

22.2%

Average 12-month Sharpe Ratio

0.35

Performance dispersion in Q4 2018

8.9%

0.24

Top 30%

0.6%

Bottom 30%

-8.2%

Average 12-month correlation with the S&P 500

Performance Comparison: Danish Hedge Funds versus NHX Composite 8.0% 6.0%

3.5%

4.0%

5.8%

4.9%

2.0% 0.0%

-0.5%

-2.0% -4.0% -6.0%

-3.1% Q4 2018 return

12-month return

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

NHX Denmark

Largest Danish Hedge Funds Dec 2018, EUR

1 YoY Δ

Nordea 1 - Alpha 10 MA

2.26 Billion

+47%

Nordea 1 – Alpha 15 MA

1.09 Billion

+29%

DI Hedge Fixed Income Strategies

1.04 Billion

-11%

NHX Composite

Hedge Hunds by Strategy Multi-Strategy 13 Fixed-income 17

CTA 2

36

Equities 3 Fund of funds 1 PAGE

5

www.hedgenordic.com - April 2018

FINLAND Finnish Hedge Fund Industry Down 6.9% in Q4

HedgeNordic's Ranking Pie

The Finnish hedge fund industry was the second-worst performing in the fourth quarter of 2018 in the four Nordic countries. Speaking of performance, Finnish hedge funds delivered the second-lowest 12-month compounded return.

When looking at risk-adjusted returns, the Finnish hedge fund industry 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 0.17. 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 second-highest in the Nordics, whereas the 12-month volatility was the second-highest among the four industries.

Q4 Performance Dispersion

Q4 Return

12-Month Correlation with S&P 500

12-Month Return

12-Month Volatility

12-Month Sharpe ratio

Recent Hedge Fund Launches in Finland 2018 2017

Q1

Q2

Q3

Q4 Evli Factor Premia

PAGE

6

Northern Star MG Relative Value

Q1

Q2

Q3

Q4

2019

www.hedgenordic.com - April 2018

Active Hedge Funds

18

Fraction of hedge funds with positive returns in Q4 2018

Top performing hedge funds in Q4 2018

19

in Q3

Estlander & Partners Alpha

-1.0%

Estlander & Partners Presto

-1.6%

NS MG Relative Value

-2.0%

AIM Diversified Strategies

-2.0%

FIM Alpha

-2.9%

0.0%

Average 12-month Sharpe Ratio

0.17

Performance dispersion in Q4 2018

14.8%

-0.84

Top 30%

-1.6%

Bottom 30%

-16.4%

Average 12-month correlation with the S&P 500

Performance Comparison: Finnish Hedge Funds versus NHX Composite 4.0%

1.2%

2.0% 0.0% -2.0% -4.0%

-3.2%

-6.0% -8.0% -10.0%

-6.9% Q4 2018 return

-5.3% -7.7% 12-month return

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

NHX Finland

Largest Finnish Hedge Funds Dec 2018, EUR

1 YoY Δ

VISIO Allocator Fund

159.2 Million

-4%

Estlander & Partners Alpha Trend

85.5 Million

-14%

HCP Focus Fund

45.5 Million

+43%

NHX Composite

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

CTA 5

18

Equities 3 Fund of funds 5 PAGE

7

www.hedgenordic.com - April 2018

NORWAY HedgeNordic's Ranking Pie

Norwegian Hedge Fund Industry

Down 9.4% in Q4

The Norwegian hedge fund industry was the worst performing in the fourth quarter of 2018 in the four Nordic countries. Speaking of performance, Norwegian hedge funds delivered the lowest 12-month compounded return. When looking at risk-adjusted returns, the Norwegian hedge fund industry had the second-worst 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 0.37. 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 highest in the Nordics, whereas the 12-month volatility was the highest among the four industries.

Q4 Performance Dispersion

Q4 Return

12-Month Correlation with S&P 500

12-Month Return

12-Month Volatility

12-Month Sharpe ratio

Recent Hedge Fund Launches in Norway NOMA Fokus

2016

Q1

Q2 Titan Opportunities

PAGE

8

Q3

Q4

2017 No hedge fund launches in 2017 and 2018

Q1

Q2

Q3

Q4

2018

www.hedgenordic.com - April 2018

Active Hedge Funds

17

Fraction of hedge funds with positive returns in Q4 2018

Top performing hedge funds in Q4 2018

18

in Q3

Pareto Nordic Alpha

-0.5%

Sector Healthcare Fund

-1.7%

Borea European Credit

-1.9%

Pareto Nordic Omega

-2.4%

Alchemy Trading

-3.1%

0.0%

Average 12-month Sharpe Ratio

Performance dispersion in Q4 2018

-0.56 0.37

18.6%

Top 30%

-1.9%

Bottom 30%

-20.5%

Average 12-month correlation with the S&P 500

Performance Comparison: Norwegian Hedge Funds versus NHX Composite 4.0%

3.2%

1.3%

2.0% 0.0% -2.0%

-1.5%

-4.0% -6.0% -8.0% -10.0% -12.0%

-9.4% Q4 2018 return

-8.7% 12-month return

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

NHX Norway

NHX Composite

Largest Norwegian Hedge Funds Hedge Hunds by Strategy Dec 2018, EUR

1 YoY Δ

AAM Absolute Return Fund

377.6 Million

+54%

Taiga Fund

237.0 Million

-9%

Borea Høyrente

197.1 Million

+18%

Multi-Strategy 2 Fixed-income 2

CTA 1

17

Equities 12 Fund of funds 0 PAGE

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