Preqin has 109 known Scandinavian hedge fund investors on its Hedge Investor Profiles database. Sweden accounts for 36.7% of hedge fund investors in the region, with Finland representing 25.7%, Norway 21.1%, Denmark 11.9% and Iceland making up the remaining 4.6%.
Private sector pension funds represent the largest group of hedge fund investors in the region making up 23% of the total number of institutions active in the asset class. Insurance companies are the second largest group of investors, representing 20% of total numbers of investors with an active interest in hedge funds. Varma Mutual Pension Insurance Company is one of the biggest investors within this group, currently investing around EUR 3.9 billion in hedge funds.
Public pension funds account for 17% of the total number of hedge fund investors in Scandinavia. The remaining 40% is made up of a range of institution types including fund of hedge funds (13%), investment companies (7%), family offices and foundations (6%) and asset managers (6%).
Scandinavian investors are optimistic about the long-term prospects of the hedge fund market. 46% are looking to increase their allocation to hedge funds and 44% will be keeping their exposure the same. ATP Pension Infrastructure currently has less than 1% allocated to hedge funds, which is short of its 5% target allocation to the asset class. The pension fund runs both in-house hedge funds and in addition it employs external managers. Over the course of 2010 ATP will be actively looking to deploy capital to a number of new hedge fund managers.
For more information on institutional investors in hedge funds, please see Preqin's Hedge Investor Profiles database.