An expert panel with news site Realtid takes a Swedish look at the hedge fund market, where the country’s oldest fund, Brummer & Partner’s Nektar, was just shut.
“The five latest years, since may 2014, 49 Swedish-registered hedge funds have closed. That is on average nearly one per month and it appears likely that it will continue at around the same rate,” says Jonas Lindmark, chief analyst and editor at Morningstar, in the panel interview published by Realtid.
A tough 2018
Also on the panel are Johanna Påhlson, a fund expert with pensions advisor Söderberg & Partners, and Pia Haak, responsible for allocation at Swedbank Robur.
According to views in the article, poor performances during 2018 could further burden the hedge funds, an asset category where high fees are under increasing pressure as the whole funds sector is becoming more cost-conscious.
Don’t judge them against the market
Yet Johanna Påhlson points out that hedge funds should not generally be benchmarked against the stock market in general – as a part of their purpose is to provide alternatives.