Sentat Event Driven ends 2011 ahead of peers with Nordic-focused approach
Thu Jan 26, 2012
Former Alfred Berg equity broker Sten Berggren’s fledgling event-driven fund has completed its first year of trading with a strong return in a generally poor year for European event-driven strategies – and the manager is confident that his views on Nordic companies will continue to bear fruit in 2012
The past couple of years have seen event-driven funds receiving high levels of investor interest, and event-driven managers have generally been bullish about the potential opportunities to be exploited by their strategies.
A panel of specialists at the EuroHedge Summit in Paris last May were convinced that this was a good time for event-driven, citing the likelihood of organic company growth and an increase in M&A activity in the near-term.
But if a bumper year for event-driven, merger arbitrage and special-situation strategies was truly on the cards, 2011 was not that year. Most of the event-driven funds reporting to the EuroHedge Database lost money last year – some of them heavily so. Dollar-based event-driven funds were collectively down 6.15% for the year, and euro-denominated funds were off by 2.11%.
Among the few bucking the trend was a relatively new entrant, the Nordic-focused Sentat Event Driven Fund...
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