Finland opened up its hedge fund market back in 1998, just
two years after Swedish legislation pioneered a framework for
an alternative investment industry. Like Sweden, Finlands
supportive regulations not only stimulated a local hedge fund
industry, but also made hedge funds acceptable to a broad range
of retail investors and institutions.
However, in recent years, its relative position in the
Nordic universe has declined, primarily due to the rapid rise
of the Norwegian and Danish hedge fund markets. In 2005,
Finland was the second-largest home for Nordic hedge fund
assets with a market share of 13%, but has slipped down to the
fourth ranking with a 7.8% share.
While this relative decline can partly be blamed on the
modest flow of new hedge funds into the market, new initiatives
such as the Contango Commodity Fund nevertheless
reflect an ongoing entrepreneurial spirit within the