Absolute Return Partners is launching the NEAS Power Fund on 1 October in response to rising investor demand for uncorrelated and liquid alternative investment vehicles.
The fund will trade futures, forwards and options on electricity, carbon emission certificates and the commodities which are the components of the power complex (coal, gas and oil) and will be applying a relative value approach.
More than 95 per cent of the securities traded will be listed on either Nordpool or the EEX, the two main European power exchanges.
Absolute Return has appointed NE Capital Management to be the sub-investment manager with responsibility for the day-to-day management of the portfolio.
NE Capital Management is the capital management arm of Nordjysk Elhandel (NEAS), a Danish energy company with substantial commercial interests and trading experience.
Niels Jensen, senior partner at Absolute Return Partners, says: “We are excited to launch The NEAS Power Fund at a time when there is a premium on liquidity. We have detected growing demand for truly uncorrelated, alpha-generating products. We believe The NEAS Power Fund can deliver this whilst offering monthly liquidity at the same time.
“Furthermore, we are privileged to work with a sub-investment manager who not only has substantial commercial experience but has demonstrated the ability to successfully trade the power markets over the past seven years. What has impressed us most about NEAS and NECM, though, is the rigorous and disciplined approach to risk management. Their operational framework is quite simply second to none.”
