8 June 2015, Stockholm, Sweden | News
Catella Nordic Long/Short Equity has been managed since mid-May by Martin Nilsson and Ola Mårtensson, after Jonas Wikström, who previously managed the fund, left Catella. The nature and direction of the fund will not change, and it will remain a pure Nordic long/short equity fund, with fund performance determined by long and short positions in equities and not by general market exposure. Historically, the fund has had zero correlation (0.11) with the equity market and our ambition is for this to remain the case. Our objective is to increase the Nordic element in the portfolio and to invest across the entire spectrum of small and large companies.
The management of the fund is driven by a synthesis of fundamental and quantitative analysis, with active risk control to limit the risk at the individual stock level, and with broad market risk. The fundamental analysis generates primarily the fund's long positions, while the quantitative analysis more closely determines the short positions and hedges, which involves protection against risk. This division is very much intentional since the fundamental analysis is forward-looking and places a value on a company's future opportunities while the retrospective quantitative analysis instead captures the inherent weaknesses in a company's business model.
We have a balanced approach in our fundamental analysis, in which we do not in advance place a premium on any particular type of company over another. Companies are analysed individually and stand on their own merits, rather than comparing them from a broad macroeconomic perspective. Each company is part of a value chain and, aside from information from the company itself, we analyse information from its customers and suppliers, and from independent industry experts.
In our quantitative analysis we review a company's historical income statements, balance sheets and cash flows. The sentiment of other market participants and statistical properties of price history are also factored into the overall picture. The goal is to find individual short positions and to construct baskets to hedge market risk.
Martin Nilsson has extensive experience of Nordic equities, as both a portfolio manager and an analyst. Martin recently joined Catella from Nordea Fonder. Ola Mårtensson has worked with allocation, risk and equity derivatives for the best part of two decades and has been with Catella since 2003.
IMPORTANT INFORMATION
Investments in fund units are subject to risk. Past performance is no guarantee of future returns. The money invested can both increase and decrease in value and there is no guarantee that you will get back the full amount invested. No consideration is given to inflation. For further information, a complete prospectus, key investor information documents, annual reports or half-yearly reports, please contact us using the details below.The fund may use derivatives and may have a larger proportion of the fund invested in bonds and other debt instruments issued by individual state and municipal authorities, and within the EEA, than other UCITS funds.
