Danske Bank’s fixed income hedge funds are more in demand by investors than ever before and this year have rounded EUR 2 billion in assets under management – a doubling since the start of 2014.

There are several reasons for the increasing interest, according to Michael Petry, who is head of hedge funds at Danske Bank Asset Management.

“First of all, investors have generally become more aware of the attractive return opportunities afforded by hedge funds and also their contribution to portfolio diversification. Second, we have managed to build a very strong track record for our fixed income hedge funds, which in recent years have received major recognition. For example, last year one of our funds scooped a EuroHedge Award for best long-term performance over 10 years,” he says.

Core of skilled specialists

Danske Bank launched its first fixed income hedge fund back in 2004, and Michael Petry has been part of the journey more or less since then. He was hired a few months after the launch 15 years ago – and a key reason for the solid, long-term performance has been continuity, according to Michael Petry.

“Over the years, Danske Bank Asset Management has managed to maintain a core of skilled and experienced portfolio managers and risk analysts who complement each other well,” he explains.

Core principles of the funds

Danske Bank Asset Management currently manages four fixed income hedge funds, with the latest one launched last year. While the other funds are focused on the Nordic and European fixed income and bond markets, the new fund has a more global focus.

All the funds follow the same core principles, however:

“All the funds aim to deliver a positive, absolute return, regardless of the direction of the financial markets, and they do this via a long series of strategies that seek to capitalise on interesting patterns and discrepancies in fixed income and bond market pricing,” explains Michael Petry.

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Disclaimer: Danske Bank has prepared this material for information purposes only, and it does not constitute investment advice. Always speak to an advisor if you are considering making an investment based on this material to establish whether a particular investment suits your investment profile, including your risk appetite, investment horizon and ability to absorb a loss.