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The Norwegian Sovereign Wealth Fund in the amount of 1.8 Titus presented its first investment with the outer fund of the HEDGE Fund for the growing and declines of shares prices, and plans to assign one billion dollars more to this strategy because it tries to increase the return.
NORGES BANK investing managementwho manages the giant oil and gas fund, led by former Hedge Fund chief Nicolai Tangen, he told the Financial Times that he had invested a long short strategy in January and wants to give mandates of about $ 250 million to other such managers.
“We are currently evaluating long-term strategies in Europe and the US,” said Erik Hilde, a global head of external strategies at NBIM.
“The market is changing” and has grown by the statement of the number of smaller, privately owned, in which the NBIM could also invest the amount of assets to which these funds operated, he added.
The NBIM move comes because some investors are becoming more and more concerned that the estimates of the capital market look stretched and that the simple possession of the portfolio of the shares is just no longer the best way to make money from the market.
Global shares on Tuesday have been a sudden sale due to fear of the influence of trade tariffs by US President Donald Trump.
Capital long – Strategy launched in 1949 by Alfred Winslow Jones – is the oldest type of Hedge Fund. Managers bet in stocks that they believe will well and against the names they believe will fall at the price.
Many of these funds have suffered outflows in recent years, however, due to poor performance and how large institutional investors are transferred to a cheaper, passive launch of a portfolio.
NBIM, which invests with 110 external managers who only work long -lasting strategies, said he hoped that a new term would provide more than the long -term average of his current external managers of 1.8 percent above the reference value a year after the fees. NBIM is already internally launched by long short capital strategies.
Hilde said the strategies would be held in separately managed accounts. Managers who operate these accounts would be slaughtered on the decline in the price borrowing of shares held in the large NBI portfolio for sale on the market, which means that the Fund would not be as a whole net short of any society.
Managers would “be exposed to high estimates, frauds and unsustainable business models,” he added.
The company said she did not decide how many mandates to allocate and that it would depend on the managers who applied for them. The fees will be largely based on the success of the fund. In the United States, they will initially target managers in the technological and health sector.
NBIM wants to invest with smaller, privately managed organizations, because “more often they have a higher excess of yields than greater because of better complying of interests, compensation structures that strengthens this alignment and better in attracting, retaining and growing talent,” is said.
The company observes a series of capital capital strategies with a long short capital, including those that balance the short bets against long bets, and those inclined to grow or fall in price.
Tanger is the NBIM CEO of September 2020 and has been hired from if -a, Hedge Fund He founded in 2005.
Fund of sovereign wealth, founded for managing oil and gas revenue in the country, has brought an annual return of 7.5 percent in the last decade. Last year, a bumper for US technological shares helped the Fund to achieve 13.1 percent of refund.
More than 70 percent of the fund has been invested in shares, 27 percent are in fixed income, and 2 percent in real estate that are not on the list. The Fund was consistently sought from the Government for permission to invest in private markets, a request rejected by the Ministry of Finance in the country.
Calum Kapoor is a journalist in Mandatewire, a newspaper service published by FT Specialist
