All funds listed in the Nordic Hedge Fund Index (NHX) databases are eligible for participating in the 2012 Nordic Hedge Fund Award. This is to ensure all data going into the calculation models is at same standards, complete and fully transparent to the organizer. As of December 31st 2012, 122 hedge funds were listed within the NHX in will be automatically be considered to the respective categories they are listed in. While the organizer will do his 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. Funds can be submitted to be considered for nomination until February 15th 2013. To submit a fund, please click here: submit fund.
Submission to and lisiting within the NHX databases and for the 2012 Nordic Hedge Award is free of charge.
Short listing – Nominations
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, taking the funds Sharpe Ratio into considertation.
The top five scorers of each category are defined as “short listed” and are automatically nominated for the 2012 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.
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 model the organizer introduced a professional Jury to the scoring. This Jury will also take “soft factors” into acount and determine the final ranking of funds.
To ad to objectivitiy, Jury members will be handed the list of short listed funds in random order and points scored according to the calculation model will not be communicated to Jury members.
Each jury member will award points to each of the shortlisted funds. Points may be added or subtracted. Jury members will award their points at their full discretion and will not be influenced by the organizer. However, jury members are advised to consider some of the following aspects of the management company and/or fund that: Transparency in communication, fund raising, marketing, business integrity, fees, administrative setup…to mention a few. To find out more about the jury and jury members, please click here.
Nominated funds and managers as well as 2012 winners can be viewed here: Nominations & Winners 2012
Picture: (c) Marko Greitschus—pixelio.de