Finnish EUR 45 billion investor flees credit for macro hedge funds

A Finnish private-sector pension firm with about EUR 45 billion ($53 billion) of assets may shift more money into global macro investments as it sours on credit.

Photo: Varma

Varma Mutual Pension Insurance Co. may shrink its exposure to credit long/short strategies later this year or in the first half of 2019, according to Kai Rimpi, its director of hedge funds. The company has already cut investment in the strategies over the last two years to 5 percent of its portfolio, from 15 percent.

“Corporate credit long/short hedge funds are one area where it’s just very difficult to generate the risk-adjusted returns we’re looking for,” Rimpi said in an interview. “It’s performed extremely well for years but now that spreads are tight, it will make producing similar returns difficult.”

Read the whole article

Get 14 days free access.
No credit card required.

An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

After two years of preparation: Robur launches dark green prestige fund

Sweden's largest fund manager is launching a climate impact fund with Swedbank's insurance unit as anchor investor. "We've had some great interest from larger investors and are in close contact with several potential investors that have expressed an interest," the new fund's portfolio manager tells AMWatch.

Further reading

Trial banner

Latest news


Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch