The fund offers diversification
To limit risks, we strive for a portfolio of highly liquid companies. Normally, the fund has 60–80 core holdings in order to achieve proper diversification. An investment in an individual company typically does not exceed 8% of the fund. The fund aims to have a maximum of 20% of the capital in companies that are in the development stage and are not yet cash-flow positive. Another risk diversification target is that an individual negative corporate event should not weigh on the fund’s performance by more than -1 %.
Our investment strategy also includes utilizing the hedge fund’s more flexible investment mandate in order to create value and limit risks. However, it should be noted that the fund has a positive bias in the long term and in no way is market neutral. The managers use derivatives and futures both to protect capital and to generate returns.