Stockholm-based hedge fund managers Adapto Advisors are leading a rash of regionally-focused hedge f...
Stockholm-based hedge fund managers Adapto Advisors are leading a rash of regionally-focused hedge funds, with an equity long/short fund focusing on the 100 most liquid stocks in the Nordic market.
Jasper Almkwist, portfolio manager and founder of Adapto Advisors, said the fund, pending the regulator's approval, would mix fundamental with technical analysis to select its stocks. A typical exposure, according to the group, would be 55% to Sweden, 16.5% to both Finland and Norway and 12% to Denmark.
The fund, scheduled for a first quarter launch, will measure the conviction level toward stocks by analysing fundamentals and mathematical models with an aggregate score determining trade execution. It will encompass 36 proprietary mathematical/ technical models that have been developed over 10 years. However, investors should be prepared for a high portfolio turnover, said the group.
Almkwist said the Adapto Advisors fund would also limit its exposure to non-Nordic stocks to 10% and aim for net returns of at least 15%, with a maximum drawdown of 3% and nine positive months each year.
However, because of its limited geographic scope, the fund's capacity is set initially at E150m (£102m).
Almkwist added in time Adapto Advisors would also apply the analysis style to other markets, such as Germany or the UK.
Also believed to be preparing launches of regionally-focused funds are Absolute Capital Management Holdings (for a European large-cap portfolio), under Florian Homm, and Clareville Capital, which is planning an India-focused fund for a Spring launch, having leased an office in Mumbai to this end from January.
On the fund of fund front, Forsyth Partner's late last year also planned to tap into the potential of the sub-continent with a fund of Indian funds - the India Opportunities fund.
This Bermuda-domiciled portfolio, managed by Peter Toogood, launched in late October with $20m and offers daily dealing.
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