Rhenman to shutter Global Opportunities equity long/short hedge fund

Global opportunities

Rhenman & Partners Asset Management says it is closing its Rhenman Global Opportunities L/S strategy and intends to return capital back to investors.

The fund – a global equity-based strategy which trades long and short across all industries and sectors, with a focus on value-oriented companies – has struggled with performance throughout 2020.

The strategy, which has an annual return target of 7-8 per cent - is down more than 23 per cent over the 10-month period since the start of this year.

In a statement, the Stockholm-based firm – known for its healthcare-focused investments – thanked all those investors who had been invested in the Global Opportunities vehicle.

“The decision to liquidate the sub-fund Rhenman Global Opportunities L/S is primarily because the value of the sub-fund’s total net assets is deemed to be the minimum level for the sub-fund to be operated in an economically efficient manner,” the firm said.

“In addition, the preconditions for raising capital to the sub-fund are not deemed to be in place.”

While the Stockholm-based hedge fund manager - led by founding partner and chief investment officer Henrik Rhenman - is best known for its Rhenman Healthcare Equity Long/Short flagship fund, which trades a range of pharmaceutical, biotech, and med-tech stocks, the Global Opportunities strategy has a much broader market focus.

Formally launched in 2017, led by portfolio manager Staffan Knafve, the global strategy has an overall long bias, going long in stocks considered to have fundamentally attractive valuations and shorting those names overvalued in comparison to their growth prospects.

In October, Rhenman Global Opportunities fell 1.77 per cent – its worst month since March this year- with energy and industrial stocks losing the most amounts of money that month, as investor aversion spiked.

In a recent performance update, Rhenman said the fund’s long positions dragged down performance by 2.1 per cent in October, while short positions were up 0.3 percent, as measured in SEK.