The shaky stock market in 2022 has also been difficult to navigate for Nordic hedge funds. And interest rate hedge funds are no exception. This is shown by data from Hedgenordic, which compiles the returns from 143 hedge funds based in, or focused on, the Nordic market. As of the end of October, the broad NHX Composite had fallen by around 7 percent on the year, while the return for interest rate hedge funds, NHX Fixed Income, had recorded a decline of around 11.9 percent.

In this context, Scandinavian Credit Fund I stands out. With a return in 2022 (as of the end of October) amounting to +4.36 percent, the fund ranks second among the best performing interest rate hedge funds during the year (see table 1 below). Looking at the risk-adjusted return measured as Sharpe ratio, the fund is in a class of its own with an achieved value of 4.84 (see table 2 below), which is also the highest measured value of all Nordic hedge funds in the database.

Table 1. Best-yielding Nordic interest hedge funds in 2022 (HedgeNordic)

Table 2. Best risk-adjusted return (Sharpe) among Nordic fixed income hedge funds in 2022 (HedgeNordic)

Scandinavian Credit Fund I top-ranked among the Nordic interest rate hedge funds