Stockholm (HedgeNordic) – After experiencing the second-worst month since 2008 back in February, Nordic hedge funds recouped some losses after gaining 1.3 percent on average last month (89 percent reported) to end the first quarter down 2.9 percent. All strategy categories within the Nordic Hedge Index ended the month in the green, with CTAs leading the gains.

Month in Review – March 2022

All five strategy categories in the Nordic Hedge Index posted gains in March after all categories experienced losses for two consecutive months. Up 4.9 percent last month, Nordic CTAs achieved one of their best months ever – best month since January 2015 and second-best since late 2010. Multi-strategy funds advanced 1.4 percent on average in March to end the first quarter of 2022 down 2.0 percent. Fixed-income funds, meanwhile, gained 1.3 percent to trim their year-to-date decline to 4.0 percent. Equity hedge funds ended the first quarter down 4.1 percent after edging up 0.4 percent in March. Funds of hedge funds are almost flat so far in 2022 after gaining 1.1 percent last month.

At a country level, Finnish hedge funds gained the most during the month of March, with an average gain of 1.9 percent to trim the year-to-date decline to 4.2 percent. The Danish hedge fund industry, dominated by fixed-income strategies, advanced 1.4 percent in March to end the first quarter in negative territory at 5.2 percent. After enjoying an average gain of 1.2 percent last month, Norwegian hedge funds as a group ended the first quarter of 2022 almost flat at negative 0.2 percent. Swedish hedge funds, which account for the largest portion of the Nordic hedge fund industry, were up 1.1 percent on average in March and down 1.7 percent for the quarter.

The performance dispersion between last month’s best- and worst-performing members of the Nordic Hedge Index narrowed month-over-month as losses were significantly lower in March compared to February. In March, the top 20 percent of Nordic hedge funds advanced 6.2 percent on average and the bottom 20 percent lost 2.3 percent, representing a top-to-bottom dispersion of 8.4 percent versus 12.3 percent in February. In February, the top 20 percent were up 3.4 percent and the bottom 20 percent were down 8.9 percent. About two in every three members of the Nordic Hedge Index with reported March figures posted gains last month.

Top Performers in March

After a difficult start to 2022, HP Hedge Fixed Income managed by Danish fixed-income boutique HP Fonds was last month’s best-performing member of the Nordic Hedge Index. The fund gained 12 percent in March to end the first quarter down 16.4 percent. With a monthly advance of 11.6 percent, RPM Evolving CTA Fund achieved its second-best month since launching in mid-2013. The fund, which invests in a select group of young CTA managers in their “Evolving Phase,” gained 18.4 percent in the first three months of 2022.

Lynx Asset Management’s systematic trend-following vehicle, Lynx (Sweden), ended the month of March with a gain of 10.6 percent to achieve its best month since 2008. The fund gained 17.9 percent in the first three months of 2022. Atlant Green Tech Metals, which focuses on the supply chain for green metals, gained 9.3 percent in March to take its first-quarter advance to 12.5 percent. HP Fonds’ other hedge fund, HP Hedge Danish Bonds, was up 8.8 percent last month to end the first quarter down 13.8 percent.

The Month in Review for March 2022 can be downloaded below:

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Photo by Emiliana Hall on Unsplash

Month in Review – March 2022 on HedgeNordic.