Jun
11
Hedge Fund Delivers 19% Return by Betting Only on Safest Bonds
By-
Asgard fund buys mainly AAA rated debt, takes no credit risk
-
Leverage is now about 11 times, goes long risk premiums
The best returns are not in the riskiest stocks but in the least risky bonds. But you can’t get them without leverage.
That philosophy helped Asgard Fixed Income Fund deliver a 19 percent return in the past year.
“That’s the core of our strategy,” Morten Mathiesen, 45, chief investment adviser at Copenhagen-based Moma Advisors A/S, said in a phone interview on Thursday. “The best risk-adjusted returns are actually the low vol trades.”
With negative interest rates across Europe and the European Central Bank slowly moving toward scaling back stimulus, risks are high for bond investors. But Mathiesen, who advises the fund, largely ignores the direction of interest rates…
Hedge Fund Delivers 19% Return by Betting Only on Safest Bonds
