Hedge funds

Hedge funds are a heterogeneous asset class. Första AP-fonden invests in hedge funds to diversify the portfolio – particularly for major dips in the equity market. An important part of the risk in hedge funds is exposure to individual hedge fund managers.

The Fund’s hedge fund strategy is to curb the impact of sharp price volatility on the rest of the portfolio. In normal circumstance, the hedge fund portfolio is not correlated with the rest of the Fund’s portfolio, and negatively correlated in sharp downturns on the equity market.