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.
The main positive contributors during the month were BW Offshore, Prosafe and Storebrand.
Martin Nilsson, 2018-08-31
Fund manager comment
Catella Nordic Long Short was up 0.62 percent in August. The main positive contributors during the month were BW Offshore, Prosafe and Storebrand. The biggest negative impact on the return came from PGS, Outokumpu and Archer.
The US stock exchange continued to grow strongly during the month, driven by good macroeconomic data. Stock markets were weaker globally, and particularly in Asia, mainly because of President Trump's threat of an escalating trade war, primarily against China. The VINX Nordic stock market index rose 4.1 percent. The Stockholm exchange did well, mainly due to a weaker Swedish krona. There was intense focus on Sweden's elections, and now that we can see the results it is difficult to work out how the new government will be structured. However, this was expected even before the election.
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 Martin Nilsson and Ola Mårtensson.
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€.
Prizes and nominations
- Best performing Fund over a 2 year period, UCITS Hedge awards 2017
- Best performing Long/Short Credit fund, UCITS Hedge awards 2014
- Best Fund L/S Credit 2013, Hedgefund Journal Awards
- Best UCITS Fund in Europe 2013, EuroHedge Awards
- European Credit Fund of 2013, HedgePo, Investor Choice Hedge Fund Awards
