At a glance
- The strategies benefited from strong trends in fixed income, currencies and commodities after a difficult second quarter.
- For allocators, the split raises a diligence question: whether a manager’s return rests more on AI-led equity leadership or on the rate, currency and commodity trends VER credited for its top strategies.
- Hedge funds were €1.1 billion, or 4.2% of VER’s €27.1 billion investment portfolio at mid-year, the smallest allocation among Finland’s largest institutional investors, according to HedgeNordic.
Quantitative and trend-following CTA strategies led the €1.1 billion hedge fund portfolio at Finland’s State Pension Fund (VER) in the third quarter, according to VER’s quarterly commentary reported by HedgeNordic.
The strategies benefited from strong trends in fixed income, currencies and commodities after a difficult second quarter. VER’s investment team said the quarter “was characterized by a highly volatile market environment,” opening with July’s “sharp rotation away from the winners of the first half of the year, particularly in the artificial intelligence and semiconductor sectors.” Quantitative and CTA strategies “performed best, having benefited in particular from strong trends in the fixed income, currency and commodities markets.” A September rise in interest rates “once again widened the dispersion of returns across funds,” the team said.
For allocators, the split raises a diligence question: whether a manager’s return rests more on AI-led equity leadership or on the rate, currency and commodity trends VER credited for its top strategies.
Hedge funds were €1.1 billion, or 4.2% of VER’s €27.1 billion investment portfolio at mid-year, the smallest allocation among Finland’s largest institutional investors, according to HedgeNordic. Asian-focused funds, by contrast, faced the greatest challenges as the AI trend faded in July, the team said.
Reported by the Hedge Funds & Liquid Alts desk from HedgeNordic. Published . Corrections