The Cumulus team at PCE Investors has reported a 2009 full year return of 68.58 per cent for the Cumulus Energy Fund.
This follows a return of 26.64 per cent for 2008.
Cumulus’ chief investment officer Peter Brewer says: “We continue to see strong opportunities for the fund – for example, the current market conditions are similar to those which allowed a 20 per cent gain in the first quarter of 2009.”
The Cumulus Energy Fund concentrates on near term power and gas futures in Europe. The fund’s strategy arises from Cumulus’ knowledge of weather forecasting.
Chief meteorologist Warwick Norton says: “Europe’s substantial and growing deployment of weather sensitive renewable energy generation – especially wind, hydro and solar – have dramatically increased the importance of accurate weather forecasting to energy traders. Energy demand (for heating and cooling) has always been weather driven but the growing sensitivity also of energy supply to weather phenomena greatly complicates understanding and trading these markets. We thrive in this weather-dominated trading environment. Our ongoing proprietary model development is intended to ensure that Cumulus remains the market leader in weather-related energy trading.”
The fund will in future be deferring part of its performance fee to ensure that only sustained profits are rewarded.
The Cumulus team also manages the Cumulus Fahrenheit Fund – a weather forecasting pure play trading only in European and North American temperature futures (weather derivatives). In 2009 the Fahrenheit Fund’s return of 11.54 per cent was in line with its annual target return.
The Cumulus Energy Fund is managed by PCE Investors.
