Investments in fund units are associated with risk. Past performance is no guarantee for future returns. The money invested in a fund can increase and decrease in value and it is not certain that you will get back the full amount invested. No consideration is given to inflation.
The objective of the Catella Nordic Long/Short Equity fund is to deliver competitive returns regardless of market conditions.
The fund invests mainly in Nordic equities. 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, over time, to have low co-variation with the equity market and may thus both raise the expected return and lower the expected risk in a traditional equity and fixed income fund portfolio. The portfolio is structured in two parts, consisting of long and short equity positions respectively, which are both expected to contribute to the fund's characteristics while jointly creating a favourable balance between risk and return. Investments are based on a combination of traditional equity research and quantitative methods. The fund's target is to generate annual return of 5-10% with a standard deviation of 5-10% over time.
Read more information regarding changes of portfolio management responsibility.
At the end of the month the fund had an overweight in healthcare and IT, and an underweight in real estate and consumer discretionary.
Thomas Elofsson, 2020-06-30
Fund manager comment
Catella Nordic Long Short decreased by +2,2 % during the month. The short positions in SBB, Epiroc, Swedbank and Husqvarna contributed positively to this month's performance. The main positive contributors during the month were the short positions in Balder and Nordea and the long positions in Hexagon and Genmab. At the end of the month the fund had an overweight in healthcare and IT, and an underweight in real estate and consumer discretionary. Common for the positioning is that the fund has an overweight in more stable quality companies and an underweight in more indebted companies. The gross exposure was at 110 % at month end and net exposure at - 2 %.
The recovery on the world's financial markets continued in June. Signals around continued spread of the corona virus and an increased probability for Joe Biden to be the next president of the Ushas during the month been overshadowed by the massive monetary and fiscal stimulus. This stimulus and the fact that investors are moderately attracted to risky assets has put the market in a FOMO ("Fear Of Missing Out") environment, with rising and equity markets and a strong credit market as a consequence. The decisive question for markets is if and when central banks take a step back and decrease asset purchases. The month started with a strong development for value oriented companies and shifted later in the month to a focus, similar to last years, on the growth segment in the market. The market rates, despite expansive fiscal policy, has had a calm development.
Fund facts
Risk Indicator
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.
Fact
Catella Nordic Long Short Equity is an alternative equity fund with a Nordic focus that can perform in both upturns and downturns. It has lower risk than the stock market and should deliver a competitive return. The fund is managed by our hedgeteam.
The fund is suitable for investors seeking equity exposure with the opportunity to also make money in a falling 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 daily traded UCITS fund. The minimum deposit is 100 SEK/10€.
