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Frequently Asked Question

There are frequently asked questions around the modality of the Nordic Hedge Award, its procedures, objective and history. The below is an attempt to summarize and answer these in brief.

It doesn’t matter how many times you win an award, it is always very special.

 

What is the Nordic Hedge Award?

The Nordic Hedge Award is set to distinguish outstanding hedge fund managers from and active in the Nordic region.

 

Who is eligible to be nominated for and win the Nordic Hedge Award?

All funds listed in the Nordic Hedge Index are automatically qualified to be considered for nomination. Beyond that, there are two exclusion criteria (1) a minimum AuM of 25MUSD (soft criteria) and (2) a minimum track record of 18 months (hard criteria).

How are the categories defined?

The main categories for the Nordic Hedge Award reflect the categorization of the Nordic Hedge Index (NHX). And are divided into equity, fixed income and multi-strat strategies as well as Managed Futures/CTA and Fund of Hedge Funds. In addition to that prizes are awarded for the best Nordic hedge funds over all categories, for the best new launch as well as the best performers over 12, 36 and 60 months.

Who is behind the Nordic Hedge Award?

The Nordic Hedge Award is organised and hosted by HedgeNordic. HedgeNordic is the leading news and media site dedicated to the Nordic hedge fund space bringing news, research, analysis and opinion pieces on and for the local HF community. HedgeNordic is a brand of Nordic Business Media AB.

How are the Jury members selected and what role do they play?

Jury members are selected and invited to the jury board by the organizer of the Nordic Hedge Award.

Compared to other industry awards, the Nordic Hedge Award is not a pure performance award. In order to also capture components of a fund an hedge fund manager that are hard to evaluate in a quantative model the organizer introduced a professional Jury to the scoring sytem. This Jury will also take “soft factors” into account and determine the final ranking of funds through the points each jury member awards.

To ad to objectivity, Jury members will be handed the list of short listed funds in random order. Ranking of the funds and points won in the quantative system will not be disclosed to Jury members. Further more, of the scores submitted by the six individual members, the highest and the lowest score are disregarded. Only the mean four scores will be considered for the combined Jury score. To learn more about the Jury members, please click here: Jury Members

How is the short list determined

The organizer will rank all funds eligible for nomination according to a calculation model. This model will translate the funds results to a point scoring model. Points will be awarded for absolute performance, stability of returns, performance in relation to historic returns of the respective fund, performance in relation to the defined benchmark (subindex within NHX) and risk adjusted returns after being weighted with multipliers. (As example, points scored for returns in relation to benchmark could be awarded with a factor of 1,25 ). A special emphasis and thus heavy weigthing is given to risk adjusted returns, Sharpe Ratio into considertation.

The top five scorers of each category are defined as “short listed” and are automatically nominated for the Nordic Hedge Award. The short list may be extended by aditional funds for (a) any fund that scores 85% of points achieved of the highest point scorer (b) any fund that scores 90% of points achieved by the third ranked fund. The short list then will be handed to Jury members, who will ad or subtract points per fund to determine the final ranking.

What are the Nordic countries?

The Nordic countries or Nordics are a geographical and cultural region in Northern Europe and the North Atlantic, where they are most commonly known as Norden (lit., “The North”). They consist of Denmark, Finland, Iceland, Norway, and Sweden, including their associated territories (Greenland, the Faroe Islands, and the Åland Islands).

What criteria are considered to determine the winners of the Nordic Hedge Award?

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What is the Nordic Hedge Index?

The Nordic Hedge Index (NHX) is an equal weighted index capturing the performance of Nordic hedge funds. The Index has been calculated and published since January 2005. To learn more, please click here: Nordic Hedge Index

Why did my fund not win an award

Well, the simple answer seems to be: someone else did better according to the way results are calculated for the Nordic Hedge Award.

What is the universe of qualified funds?

The Nordic Hedge Award is set to distinguish outstanding hedge fund managers from and active in the Nordic region. To insure all funds and managers can be compared by the same standards and statistical, historic information all funds and managers the organizer of the Nordic Hedge Award will draw all information from the same database. This is crucial as key data that may affect the outcome of the Award could be calculated in different ways (eg.: risk free rate for Sharpe Ratio, time periods for standard deviations…) Therefor

  • Fund must be registered  in Nordic Hedge Fund Index (NHX) and
  • Performance data must be complete and up to date within the NHX databases and
  • Fund must be a public investment scheme
  • Asset under Management at minimum 25 million US Dollars (soft factor, organizer may take discretion)
  • Minimum track record of 18 months by year of respective surveillance period

How are the Performance Award Winners determined

Funds and managers will be presented with “Performance Awards” for the highest net performance of all hedge funds within the universe of the Nordic Hedge Index for their respective absolute returns, net of fees for the  compound 12 months, 36 months and 60 month periods preceding the year end net asset value (NAV) of the respective funds. (Example: The relevant date for the 2015 Nordic Hedge Award is the final NAV calculated for December 31 of 2015. The relevant period therefor are the 12, 36 and 60 months compound  returns preceding the NAV from December 2015).

Besides the minimum AuM requirement, no other criteria will be used or influence the results for determining the winners of the Performance Award.

Why don´t you just use performance numbers?

How is the Rookie of the Year determined?

For the 2015 Nordic Hedge Award, a new category was newly introduced for the “Best New Nordic Hedge Fund” or “Rookie of the Year.”

Funds will be considered for this Award which have a track record of less than 18 months, but have at least three monthly NAV preceding the year end net asset value (NAV) of the respective funds. Funds must be listed in the HedgeNordic databases and Nordic Hedge Index and meet the criteria required for such listing. There will be no minimum / maximum requirement for assets under management to be considered for the “Rookie of the Year” category.

As in this category the traditional scoring and ranking methodolgy would lead to no meaningful results due to funds trading different stratiegies with different datasets available for evaluation, a new and simplified ranking procedure will determine the winner of this category.

A jury put together of the former winners of the Nordic Hedge Award will, based on a questionaire, determine the “Best New Nordic Hedge Fund Launch”.

See more details on the “Rookie of the Year” category read more

Does the universe considered really capture all Nordic hedge funds?

We´d like to think so. Realistically however, there are some funds who, for whatever reason, choose not to be listed in the Nordic Hedge Index (NHX) and thus drop out of the universe. And, there may be a small number of managers and funds despite hard and ongoing screening and research we are not aware of and have not reached out to us.

While the organizer will do the outmost to have a complete and representative we can not guarantee we have identified every fund and manager fitting the universe or that required data is made available. In an effort to insure the widest possible view of the defined universe is considered for nomination, a public invitation to submit funds is widely communicated. If you are aware of a fund or manager that should be include, do kindly indicate that to NAV@hedgenordic.com.

Who won the most awards so far?

You can find some of the figures on historic winners and some statistics of the previous years in the dedicated areas on this website.

Year  Fund Rank Year
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How are the winners determined?

The Nordic Hedge Award is set to distinguish outstanding hedge fund managers from and active in the Nordic region. All funds listed in the Nordic Hedge Fund Index (NHX) databases are eligible for participating in the Nordic Hedge Award. This is to ensure all data going into the calculation models is at same standards, complete and fully transparent to the organizer.

Quantative Score – The Shortlist

The organizer will rank all funds eligible for nomination according to a calculation model. This model will translate the funds results to a point scoring model. Points will be awarded for absolute performance, stability of returns, performance in relation to historic returns of the respective fund, performance in relation to the defined benchmark (subindex within NHX) and risk adjusted returns after being weighted with multipliers. (As example, points scored for returns in relation to benchmark could be awarded with a factor of 1,25 ). A special emphasis and thus heavy weigthing is given to risk adjusted returns, Sharpe Ratio into considertation.

The top five scorers of each category are defined as “short listed” and are automatically nominated for the Nordic Hedge Award. The short list may be extended by aditional funds for (a) any fund that scores 85% of points achieved of the highest point scorer (b) any fund that scores 90% of points achieved by the third ranked fund. The short list then will be handed to Jury members, who will ad or subtract points per fund to determine the final ranking.

  • Absolute Performance 2015
  • Relative Performance 2015 (Respective NHX Sub-Index)
  • Sharpe Ratio 2015
  • Absolute Performance – long term
  • Sharpe Ratio – long term Number of
  • Positive Months during 2015

To view the categories in which prizes are given at the Nordic Hedge Award and which categories deviate from the her described modality, please click here: categories

Qualitative Scoring – The Jury

Compared to other industry awards, the Nordic Hedge Award is not a pure performance award. In order to also capture components of a fund an hedge fund manager that are hard to evaluate in a quantative model the organizer introduced a professional Jury to the scoring sytem. This Jury will also take “soft factors” into account and determine the final ranking of funds through the points each jury member awards.

To ad to objectivity, Jury members will be handed the list of short listed funds in random order. Ranking of the funds and points won in the quantative system will not be disclosed to Jury members. Further more, of the scores submitted by the six individual members, the highest and the lowest score are disregarded. Only the mean four scores will be considered for the combined Jury score. To learn more about the Jury members, please click here: Jury Members

Final result and determining the winners

The qualitative and quantative scores have equal weighting and are combined to receive the final score per fund. The highest point score determines the winners of the respective category. Prizes are handed out to the top three ranked funds.

How can my fund be considered for an award?

Any hedge fund that fulfills the criteria of being listed in the Nordic Hedge Index (NHX) is eligible to be considered for the Nordic Hedge Award. The first step therefor is to get in touch with us via NAV@hedgenordic.com to have your fund reviewed and listed. All funds listed in the NHX automatically qualify for the Nordic Hedge Award. Actually winning an award then of course comes down to the fund scoring high enough according to the procedure for determining the winners and with the jury.

It seems you always get the year wrong, why?

To determine the best fund of a given year, say 2016, we actually need to have performance and risk numbers for that year. The earliest we can evaluate and compare key statisics is at the end of the year. As we also have some fund of funds and less strategies within the universe, it can be mid February until the final NAVs of December 31st and can run out model. Therefor, the awards for the best hedge funds of 2016 are determined and handed out during 2017.

 


Should you have any more questions or querries around the Nordic Hedge Award, would like your fund considered, sponsor the event or take a role in another shape and form…