Excalibur is a fixed income hedge fund relying on fundamental macro analysis and quantitative analysis of the relative value of money market- and credit instruments to form its investment ideas. The underlying portfolio consists of highly liquid and transparent fixed income instruments that are supposed to function well in both good and bad times. Through these transparent derivatives, the fund positions for the increase or decrease of interest rate levels or changes in interest rate curves. The fund also takes relative value positions both on country and contract level. Position taking is concentrated to markets in Swedish Krona, Euro, US Dollar, and British Pounds. In order to avoid concentration and tail risks, positions are spread between different themes and strategies.
The fund has an absolute return profile meaning that it aims to contribute positively in rising or declining interest rates and equity markets. The objective is to offer a product with lower risk that should act as a complement to regular interest rate investments. The fund can also be used as a core position in an investment portfolio that could be varied depending on the investor’s risk appetite.