505: High yield fondsduell - Heimdal vs. Alfred Berg
·1 hr 12 min·5 clips
Two managers of the largest Nordic high-yield funds face off to prove which fund investors should choose.
This episode of Pengepodden is a structured comparison, or 'duel', between two competing high-yield bond funds: Heimdal High Yield, managed by Erik Hagerup, and Alfred Berg Nordic High Yield, managed by Henrik Emil Høyerholt. Host Bjørn-Erik Sette moderates. The format involves each manager presenting their fund's strategy and background before a point-by-point comparison. Høyerholt outlines Alfred Berg's approach, emphasizing strict diversification rules, a portfolio of around 90 issuers, and connecting position size to credit risk. Hagerup describes Heimdal's focus on bottom-up analysis, building relationships with other managers for constructive restructurings, and taking high-conviction bets in companies he deems low-risk. The host then compares the funds using specific criteria. Heimdal has a higher Morningstar rating (5 stars vs. 3), superior recent returns (15.8% vs. 11.2% over one year), but greater concentration in its top holdings. Alfred Berg has more bonds in its portfolio (130 vs. 81) and a lower total cost (0.59% vs. 0.89%). The managers discuss the impact of fund size on maneuverability and the advantages of being larger in restructuring situations. They trace the transformation of the Nordic high-yield market from being 80-90% oil and gas related before 2014 to a much more diversified sector today. A recurring theme is the importance of managing default risk and the illiquid nature of the bond market, which makes these products suitable for a long-term horizon. The episode concludes with both managers providing return expectations of 8-10% annually for the coming years, positioning high-yield funds as an alternative with potentially lower volatility than equities.
