The objective of Catella Hedgefond is to achieve stable returns at low risk, regardless of market conditions.
The fund invests mainly in Nordic equities and bonds. The fund applies negative screening for sustainability criteria and consequently avoids long positions in companies that produce tobacco, alcohol, commercial games for money, pornography, coal, or weapons. Derivatives are used in management to protect fund capital and increase return opportunities. The fund is expected to have low co-variation with performance in the equity, credit and bond markets and may thus both raise the expected return and lower the expected risk in a traditional equity and fixed income portfolio. In structuring the portfolio, strong emphasis is placed on spreading risk and preventing any individual holding or sector from having excessive influence on fund performance. Investments are based on fundamental analysis of individual companies and traditional macroanalysis. The fund's target is to generate annual return of 3-5% with a standard deviation of 3%.
Getinge, Boozt and our overweight in banks were the shares that contributed positively to returns.
Fund manager comment
Catella Hedgefond rose 0.1 % in July. Equity investments did well, while fixed income made a negative contribution to fund performance. Getinge, Boozt and our overweight in banks were the shares that contributed positively to returns. The biggest negative contributions came from positions in Kvaerner and Billerud. Hedging in equity indexes also reduced returns as stock markets performed strongly this month.
Including dividends, the Stockholm stock exchange rose 4.1 % in July. The MSCI World Index rose by almost 3%. Stock markets in many developing countries were weak again in July, explained by sharply falling metal prices and a weak Chinese currency on talk of a trade war. Overall, corporate reports for the second quarter have been stronger than expected, especially in terms of profit growth. The share price reactions to the reports have been unusually large, both up and down.
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 or the highest permitted risk for the fund. Category 1 does not imply that the fund is risk-free. Over time, the Fund’s risk indicator may change both upwards and downwards. This is because the indicator is based on historical data for the Fund’s model portfolio, which is not a guarantee of future risk/reward.
Catella Hedgefond fund's objective is to deliver consistent, positive returns regardless of stock market trends.
To make money in both market upturns and downturns, the fund managers invest in Nordic fixed-income securities and equities, and gain protection from downturns through derivatives. This means that timing is not an issue when investing in Catella Hedgefond, and low risk is a cornerstone of the fund. The fund is run by a total of six managers. The team's experience and knowledge generate the management performance.
The fund is traded daily, making your money normally available immediately. Over time, the fund has had a high risk-adjusted return. This is a fund for investors seeking a solid base for their savings.
Prizes and nominations:
- Best Hedgefund 2015- Fondmarknaden.se
- This years Hedgefund 2014 - Privata Affärer
- Best Hedgefund 2014- Fondmarknaden.se
- Nominated Euro Hedge Awards 2014
- Nominated Nordic Hedge Award 2014
- Nominated Investors Choice European Multi Strategy Fund of 2014