Sweden's second national pension fund, the Skr 173bn (€18.5bn) AP Fonden 2, has dissolved its strategic allocation to hedge funds after concluding that they have produced inconsistent returns.

It has cancelled mandates with hedge funds RAM One, Zenit, Nektar, Finch Neutral, DnB Prisma, Lynx, Tanglin and Goldman Sachs Global Opportunities. The cancelled briefs are mostly Swedish and European equity long-short mandates, and worth together about Skr 1bn.