Karl Oscar Strøm, a former Partner at Pareto Securities, is closing the Norwegian hedge fund Paleo Fund, which he founded in 2021. following several consecutive years of financial losses, according to a report by AMWatch.
The report cites a statement released on Monday as saying that the board of the Paleo Fund, which catered to professional investors in Norway, has now decided to cease operations, after the vehicle struggled to generate gains since its inception.
“The board of Paleo Fund has decided to suspend activity in the fund, and throughout September, we have been in contact with relevant organisations to explore the possibility of selling the management and the fund company,” the statement read, adding that the fund’s setup is currently up for sale.
Paleo Fund launched with initial investments totalling NOK75m (€6.4m). However, it posted a negative return of 15% in 2023, following an 8% decline in the prior year. The current amount of capital remaining in the fund has not been disclosed.