Swedish Energy Hedge Fund Drops Oil, Emissions

Dec 4 2012 | 1:13pm ET

Sweden's Shepherd Energy is quitting oil and emissions trading, which have cut into its returns this year.

The firm's energy hedge fund boasted gains of 8.6% on its electricity book. But that figure fell to 1.22% when losses on oil and emissions are factored in.

The firm plans to focus its attention on the Nordic power market.

"Our best performance comes from trading power," fund manager Arne Oesterlind told Bloomberg News. "Excessive price movements have prompted us to withdraw from trading oil, while narrow price ranges and too little volatility for emission permits have caused us to pull out."

"Nordic power is where our team's competence is, and we are more likely to achieve our return goals"—12% to 15% annually—"now that we focus on electricity, including Germany," Oesterlind explained.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note