An alternative equity fund that can perform in both upturns and downturns. Even out the ups and downs!
Fund manager comment
The Nordic exchanges were weak in November. The relative winners were Norway and Finland, while the Danish and Swedish stock exchanges reported large losses. The strongest Nordic sectors were power and telecom operators, while oil and gas and other commodities were the weakest.
Much of the market's focus has recently been placed on US tax reforms. The House of Representatives and the Senate have each approved separate reforms that will now have to be stitched together. During his visit to Asia, President Trump pointed out that the United States will continue to put pressure on its trading partners, particularly China, in order to reduce its trade deficit.
Catella Nordic Long Short Equity fell 3.44 percent this month, while the VINX Nordic index fell 2.7 percent. The weakest shares this month were Lundin Mining, Saferoad and Subsea 7. Lundin Mining announced a major investment program for the next few years that will create long-term value but will have a negative impact on profitability in 2018. The best holdings this month were Wallenius Wilhelmsen and the shorts in Coloplast and Vestas Wind.
The best holdings this month were Wallenius Wilhelmsen and the shorts in Coloplast and Vestas Wind.
The risk and reward indicator illustrates the link between risk and potential returns from an investment in the fund. The indicator is based on how the fund’s value has changed over the past five years. Category 1 does not mean that the fund is risk free. The fund may over time move towards the left or right of the scale. This is because the indicator is based on historical data which is not a guarantee of future risk and reward. For information about the risk classification of each fund, please refer to the fund’s key investor information document.
We have drawn on the experience of our Catella Hedge multi-strategy fund and created Catella Nordic Long Short Equity.
Catella Nordic Long Short Equity strives to consistently deliver positive returns in which the balance between risk and reward, the risk-adjusted return, is competitive. The objective is to manage an equity portfolio that provides unit holders with positive returns in both rising and falling markets through a portfolio that has a high correlation with the stock exchange in a rising market and low correlation in a declining market. The fund invests primarily in equities listed on the Nordic exchanges.
Strategies with long and short equity positions are characterised mainly by their ability to generate good asymmetric returns. Compared with portfolios containing only long positions, a long/short portfolio can protect investors from the consequences of protracted periods of falling stocks. The fund is able to deliver good returns in a positive equity market as well as in a negative equity market.
The fund is suitable for investors who are looking for Nordic equity exposure and a fund that takes advantage of both positive and negative developments in the stock market.
The fund is permitted to use derivatives and to have a larger percentage of the fund invested in bonds and other debt instruments issued by individual central government and municipal authorities and within the EEA than other securities funds.
Target return: Absolute return with a good risk-adjusted return
The fund is a Luxembourg-listed UCITS fund and is traded daily. The minimum deposit is SEK 10 million. If you are interested in investing a smaller amount please refer to Catella Nordic Long Short Equity RC.