Despite the challenges and an allocation to Madoff, the
$500 million Swedish architects' pension fund still plans to
boost its hedge fund allocation to 15% of total assets
By Pirkko Juntunen
Institutional investors in the Nordic region have a
reputation for innovation and rapid adaptation to an
ever-changing and increasingly complex investment environment.
They have been some of the earliest to embrace alternative
investments and hedge funds have been a logical step among the
savviest Nordic pioneers for at least a decade.
Assets invested in hedge funds have continued to grow rapidly
in the region, and in Sweden in particular. According to
estimates from the Swedish investment fund association,
Fondbolagens Förening, hedge funds make up 5% to 7% of
total assets invested in Sweden, with somewhere between 80 to
100 funds registered in the country. According to EuroHedge,
there are some 70 Swedish domiciled hedge funds.