Since Brummer & Partners launched Scandinavia’s first hedge fund vehicle, the Zenit fund, in 1996, Scandinavian’s hedge fund industry has made remarkable progress over the past 11 years. Assets continue to climb rapidly, more than doubling from $9.8 billion at the end of March 2005 to around $20.4 billion at the end of March 2007, managed by over 110 funds throughout the region.
This robust growth has been fuelled by a constant flow of new managers, who set a record for start-ups in 2006, along with a growing acceptance of the necessity for alternative investments on the part of both Scandinavian retail and institutional investors. The emergence of niche funds, that are capitalising on specific sectoral strengths in the individual Scandinavian markets, such as the energy and maritime industries in Norway, has also boosted the attractiveness of local managers. And not to be outdone by...