Länsförsäkringar bucks trend and makes opportunistic investment in new hedge fund

Tue Feb 2, 2010



Swedish life fund may consider hedge funds for non-life portfolios, but costs are a concern


Swedish life fund may consider hedge funds for non-life portfolios, but costs are a concern

By Pirkko Juntunen

Länsförsäkringar, the investment company managing the life assets for its owners - comprising 24 regional insurers in Sweden - has gained a reputation for not following the crowd over the years. Instrumental in its sometimes contrarian view on investments has been Gustav Karner, the company's chief financial officer and charismatic and vocal head of asset management.

Länsförsäkringar's life portfolio totals $14.2 billion, and non-life assets another $2.8 billion. During the spring of 2009 - just as the rest of the world was thinking hedge funds were dead - Länsförsärkringar returned to hedge fund investing after a four-year break. It left the market during what many see as the peak, having exited because of high costs and low expectations of return. The decision to start investing in hedge funds...

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