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November 12, 2004 at 07:00 PM
STOCKHOLM, Sweden (HedgeWorld.com)–Skandia Liv, the life insurance subsidiary of Skandia, has appointed the Liberty Ermitage Group, Jersey, to run its Japanese long/short equity account.
The account will be funded gradually up to US$100 million, according to a statement LEG issued Nov. 11.
LEG has been represented in the Nordic region by Intervalor AB since September 2001. In the statement, Anders Bladh, the chief executive of Intervalor, said that his firm’s marketing of LEG’s low-volatility, non-directional products has been a great success.
“The new mandate from Skandia constitutes a breakthrough for one of Liberty Ermitage’s directional strategies–their long/short fund of funds,” he said. “The investment is a milestone for ‘portable alpha’ investing in the Nordic region, and both Intervalor and Liberty Ermitage are absolutely thrilled to be part of it, particularly since we are convinced this concept will grow.”
The statement defines portable alpha as the concept of separating the creation of outperformance, or alpha, from that of market exposure, or beta, to achieve higher returns in the overall portfolio.
