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.
At the end of the month the fund had an overweight in healthcare and IT and an underweight in real estate.
Fund manager comment
Catella Nordic Long Short Equity declined by 0,3 % during the month. The short positions in Husqvarna, Sagax and Marine Harvest, and the long position in Nordea respectively were the month's worst positions. Main positive contributors to the month's performance were the long positions in Orstedt, Embracer and Valmet.
December was in general another strong month for the world's equity markets with Sweden as a clear exception. Despite the broader SBX-index rising by +0.2% in December, OMXS30 fell by approx. 2% driven by weak development for the banks and other index heavyweights such as Ericsson, AstraZeneca and H&M. Other Nordic bourses were stronger with Helsinki +1.2% and Oslo and Copenhagen +4.7% and 4.3% respectively. December was characterised by a balance between further lockdowns and advances on the vaccination front which was also was reflected in mixed PMI numbers globally. The rise in the global markets was further underpinned in the days between Christmas and New Year's as a Brexit agreement was finally closed between the UK and the EU. It is noteworthy that the commodity markets continued to be strong with a positive development in the price of oil (+8.8%), continued rise in base metals and also a strong development for gold (+7%) and Bitcoin (+47%).
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.
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€.