CB Fonder closes CB Hedge

Stockholm based CB Fonder has announced the closure of its CB Hedge fund, citing returns that have not met expectations, as well as increasing regulatory costs.

CB Hedge is a long-short hedge fund that launched in mid-2007, intended to offer clients access to a market neutral exposure to the existing long only European fund CB European Quality.

The closure of the fund means the manager will focus on its long only funds including the European Quality product and the CB Save Earth Fund.

Alexander Jansson, CEO and portfolio manager said: “We have made the decision to close the fund with our investors’ best interest in mind. First and foremost, the return has not met our expectations. On top of that, new regulation will entail increased costs for the fund, which we do not see as justifiable given the fund’s historical performance. We are of course not happy with this outcome, but we are convinced that this is the best long-term decision. Henceforth, we will have a 100% focus on our long-only management, which really is the foundation of our competence. Once again, it has been proven hard to combine long-only and long/short management.”

The fund will be liquidated at the NAV of 31 March, with payments made to shareholderson 9 April. The process depends on approval of the Luxembourg regulator, CSSF, which could yet affect the timing. No redemption fees will be charged at liquidation or on payment of proceeds, CB said. All liquidation costs will be paid by CB.


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