Sweden is the centre of hedge fund activity in the Nordic region and a key player in Europe’s hedge fund industry. Data from Prequin showed that Sweden’s hedge funds had a total AUM of over $37 billion in 2021. Most firms are located in Stockholm, with some offices in Malmo and Hovas.
Which Swedish Hedge Funds are worth keeping an eye on?
Here are three of the top hedge funds in Sweden, in order of date of founding:
Brummer & Partners
Stockholm-based Brummer & Partners was founded in 1996 by Patrik Brummer, has AUM of $13 billion and over 300 employees (at time of writing in August 2023). Brummer & Partners manages several hedge funds, including the Brummer Multi-Strategy, its flagship fund, and its investment strategies include global macro and long/short equity.
Lynx
Founded in 1999 by Jonas Bengtsson, Svante Bergström and Martin Sandquist, Lynx is a quantitative hedge fund based in Stockholm, with an office in New York. The fund has developed propriety systemic algorithms to invest in a range of markets, including currencies, commodities and global equities, and in 2021, was one of the first trading firms to use machine learning. The fund currently has AUM of $7 billion and about 90 employees.
Cevian Capital
Founded in 2002 by Christer Gardell and Lars Förberg, Cevian Capital is an activist hedge fund which uses a value-based investment strategy. The fund takes a long-term approach to investing, and its capital base mostly comes from endowments, pension funds, sovereign wealth funds and foundations. It works closely with the management teams of the companies it invests in and has advisory offices in Stockholm, ,Zurich and ,London.
The future of Hedge Funds in Sweden
The Swedish hedge fund industry looks to have a healthy future.
Sweden is known for its robust regulatory framework, which provides a stable environment for hedge funds and investors alike. With a strong tradition of education, Sweden has a highly-qualified workforce, which provides the Swedish hedge fund industry with some of the best professionals in ,Europe.
Supporters of the Swedish Hedge Fund Industry
The hedge fund industry in Sweden is promoted by the Swedish Investment Fund Association (SIFA), a non-profit organisation that represents the interests of the Swedish investment fund industry, including hedge funds. Another organisation that supports the Swedish hedge fund industry is the Stockholm School of Economics (SSE), which is one of the top business schools in Europe, offering a range of programs in finance and economics. Many hedge fund managers in Sweden have studied at the SSE, and the school has a strong network of alumni in the industry.
Links with Switzerland
The Swedish hedge fund industry also has strong ties to ,Switzerland, which has a long-standing reputation of stability and competence. Swedish hedge funds often get financing from Swiss banks, and Swiss hedge funds are frequent investors in Swedish companies. This relationship benefits both countries, and points to the continued health of the hedge fund offerings of both Switzerland and Sweden.
