Nordic Hedge funds did bounce back with strong positive performances in October after five months of negative returns from May to September – but did not manage to withhold the positive leap. Nordic Hedge Funds experienced yet another negative month during November declining 0.74 pct* compared to OMX Nordic 40 which declined 0.62 pct during the month.
Best performing fund in October so far was Norwegian AAM Absolute Return Fund which is a global long/short equity fund. The fund advanced 5.22 pct in November and is now up an amazing 22.11 pct YTD (2011).
– Although the global economy seems to be recovering, the sustainability remains questionable, and the risk of a setback is high. Risks include a potential housing bubble in China, impacts from European austerity measures to cope with the mounting governmental debt and the recent catastrophy in Japan. Crude oil prices have rallied
on Middle East tensions and concerns related to global oil production capacity. Many industries within energy and natural resources will be structurally challenged by overcapacity in the coming years. We continue to find value in large resource holders with long lived assets and attractive investment prospects, writes AAM Absolute Return Fund.
Country wise Norwegian funds did do best advancing 1.15 pct in November.
Finnish funds fell 3.55 pct in November. Danish and Swedish funds fell 0.62 pct and 0.48 pct respectively. The one fund from Iceland that is included in The Nordic Hedge Fund Index has not yet reported their performance for November.
Strategy wise, NHX Fixed Income funds did best in November advancing 0.13 pct.
*Based on 47 pct of all funds in the NHX posting their November performance as of 16-12-2011
Picture: (c) Gina-Sanders—Fotolia.com