Key Takeaways:

•  Hilbert Group has picked up more than 1B SEK in the first half of 2023, eyeing 1.5B by year-end.
•  Its funds are preferred investment vehicles for 10 new institutional investors this year.

Inflows Continue Piling

Hilbert Group, the Sweden-based public asset manager, is enjoying increased investor appetite this year across its suite of funds. By the end of July, Hilbert Group’s investment vehicles had raised more than 1B SEK ($90M). On that account, they are confidently moving toward the objective of 1.5B SEK ($135M) in assets under management (AUM) by the end of 2023.

In signs of elevated interest, 10 new institutional investors have tapped Hilbert Capital, the asset management division of Hilbert Group, as their gateway to global markets. In addition, there are more than 20 other groups that are eyeing Hilbert’s funds as potential investment vehicles.

The increased inflows of capital have helped lift Hilbert Group’s share price in recent months. The Stockholm-listed asset manager’s stock gained a hefty 200% in the first half of this year.

In February, Red Acre Ventures participated in Hilbert’s funding round, backing the group with a $2M loan facility.

To match the diverse set of investor expectations, Hilbert is rotating its funds’ exposure from Long-Only trading (profit in rising markets) to Long-Short (profit from rising and falling prices). By doing so, the fund is aiming to bring drawdowns to a minimum while making room for more non-correlated returns.

The strategy overhaul is part of a larger effort by Hilbert to revamp its approach to markets by improving its investment solutions and bolstering its trading technology. The aim is to enable investors to scale their positions across funds. Read the full press release here.

New Funds for More Growth

Hilbert Capital’s main specialization is digital assets and blockchain technology products. Last year alone, Hilbert launched two new hedge funds – Hilbert V1, which deploys a market-neutral strategy with zero correlation to crypto, and Hilbert V30, which captures wide upside swings in crypto assets but limits the downside. There’s also Hilbert V100 – a fund positioned to absorb the return to growth for crypto markets.

Hilbert has managed to steer the volatile crypto market with a risk-conscious approach, which helped the firm avoid the FTX collapse as it had no exposure to the Sam Bankman-Fried-led crypto exchange and its sister company – trading house Alameda Research.

Assembling an A-Team

The group’s investment strategy, revolving around quantitative intelligence, is led by a stellar team of financiers, analysts, programmers, and more.

Hilbert Group in July 2022 appointed a new CEO to Hilbert Capital – former Cevian Capital executive Richard Murray, who also worked at hedge funds Brevan Howard and Finisterre. Former US CEO at Brevan Howard, Bruce Terry, joined Hilbert’s advisory board in 2022. 

Citadel Europe’s former chief risk officer, Dr. Thierry Pudet, was tapped as senior quant strategist, and Nick Yannakoyorgos, former lead programmer with 23 years at JPMorgan, was appointed senior quant developer.