“Come June, we have now reached DKK 1 billion in AUM, and our goal is to increase that to two or even three billion kroner. Short-term, we will focus on expanding our investor base in Denmark. In the long-term, we may also target foreign investors,” says CABA Capital’s Chief Product Manager, Kristian Myrup Pedersen, to AMWatch.
The Danish company’s flagship fund is the long/short fixed income hedge fund, CABA Hedge, which targets an absolute return averaging 5-6 percent annually by investing in Danish and Swedish mortgage securities, while hedging the interest rate risk through sales of government bonds and swap derivates. To achieve the return target, the fund uses leverage.
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