Q & A


Where do I apply to invest in Adrigo Small & Midcap L/S?

We will accept your application to purchase units by mail to:
Adrigo Asset Management
Kungsgatan 33, 111 93 Stockholm, Sweden
Or by fax: +46 8 505 887 70
Or by email: admin@adrigo.se

What is a hedge fund?
”Hedge” is an English word which, essentially, means protection. Hedge funds, as opposed to traditional equity funds, have a more open mandate as to where and how they can invest, which provides a better opportunity to protect the assets from a decline. However, the expression “hedge fund” covers a very wide group of funds, with very different investment philosophies. To understand each fund, a thorough analysis of each fund’s investment strategy would be required to understand the fund’s investment potential and risks.

What is “standard deviation”?
A measurement of the dispersion (variation) from the average value, for example the return numbers of a portfolio, or stock. It is measured in per cent.

What is “Sharpe ratio”?
This measures a portfolio’s risk adjusted return. It gives the excess return, above the risk free rate of return, in relation to the portfolio risk, defined as the standard deviation. A high Sharpe ratio indicates a good return relative the risk exposure.

What is “correlation”?
Correlation is the statistical relationship between two sets of time series. The measurement varies between +1 and -1. Zero means no proven correlation, and +1 is a perfect correlation. A traditional equity fund would normally have a correlation of close to +1 relative an equity index.

What is “high watermark”?
A high watermark assures that unit holders only pay performance fees after previous underperformance (if it has occurred) has been recovered. A high watermark is used by Adrigo.

What is ”short selling”?
The sale of securities that one does not own. Some securities, for example equities, are borrowed, and used for settlement on the settlement date. At a later stage, the securities are bought back, and the loan repaid.

What would happen in the event of bankruptcy of the Fund Management company?
If the Fund Management company would be declared bankrupt, unit holders of Adrigo Small & Midcap L/S would not lose their investments. Each Fund’s assets are fully separated from the Fund Management company. The assets of each Fund are kept by our custodian, Skandinaviska Enskilda Banken. The custodian would assume management of the assets in the event of bankruptcy of the Fund Management company.

What is an absolute return target?
This means that the returns over time are targeted to be positive, whether the markets go up or down.

Do hedge funds take bigger risks than traditional equity funds?
One must look at the underlying strategy of the hedge fund. One way to study this is to look at the long term Sharpe ratio.

Adrigo’s fund is not a UCITS Funds. What is the significance of this?
UCITS funds are regulated by a central EC directive. The directive includes a number of investment restrictions. Adrigo Small & Midcap L/S is instead a special fund according to chapter 12 in the Swedish Act (2013:561) on managers of alternative investment funds. The main differences are that UCITS are traded more frequently, and that special funds (alternative investment funds) have been granted exceptions from rules which limit how UCITS funds are allowed to invest. For further information we refer to www.fi.se.

What is Adrigos policy for sustainable and responsible investment?
Adrigo Asset Management has adopted the United Nations (UN) Principles for Responsible Investment also referred to as UNPRI. Adrigo Asset Management also has a CSR policy that means that we, among other things, do not to invest in companies that produce weapons, tobacco, alcohol, pornography, fossile fuels or commercial gambling companies.

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Investment in funds always involves some kind of risk. Past performance is no guarantee for future performance. Fund units may go up or down in value up and may be affected by changes in exchange rates. Investors may not get back the amount invested.