The present invention is directed to the syntheses of superparamagnetic nanoparticles and the incorporation of the nanoparticles as the magnetic component to form a strongly magnetic nanocomposite. The superparamagnetic nanoparticles possess no hysteresis and are too small to support eddy currents. The invention uses a ligand exchange procedure to produce aminated nanoparticles that are then cross-linked using epoxy chemistry. The result is a magnetic nanoparticle component that is covalently linked and well separated. By using this ‘matrix-free’ approach, it is possible to substantially increase the magnetic nanoparticle fraction, while still maintaining good separation, leading to a superparamagnetic nanocomposite with strong magnetic properties and low magnetic losses.