The conversation in getting more active

“Today, relatively few large Nordic institutional investors have meaningful exposure to hedge funds. The broader global trend towards increased allocations is not clearly visible in the Nordics. That said, there are signs of change. At the very least, the conversation is becoming more active,” he says.

Looking back, Martin Källström notes that the hedge fund industry saw significant momentum in the 1990s, with firms such as Brummer launching in 1996 and Lynx following in 1999. “It was a period of rapid growth, but hedge funds are inherently challenging businesses. Unlike private equity, hedge funds must consistently deliver returns without relying on persistent equity beta in order to justify their fees. Very few managers are able to do that,” he says. He adds however that the CTA industry, where Lynx operates, is structurally different. “CTAs are built on a systematic process that tend to be uncorrelated with