The London-based investment management team at Cumulus Weather Fund, on the PCE Investors Limited platform, is launching the Cumulus Energy Fund on 1 October.
The Cumulus Energy Fund will replicate the successful energy trading strategy of the existing multi-strategy Cumulus Weather Fund. It will be managed by the same team, which developed its expertise within the proprietary energy trading businesses within investment banks and utilities. The Fund will trade commodity futures, swaps and options and will not trade equities.
Peter Brewer, Fund Manager, said: "Many investors are seeking to increase their allocations to Energy without just adding more exposure to equities, oil or US natural gas. The Cumulus Energy Fund addresses this need by focusing on European downstream commodities, such as electricity and carbon emissions. The strategy has shown excellent performance, within the current fund, even in times of extreme market volatility, such as the 75% collapse in carbon emissions prices, the associated crash in European power prices and the subsequent rebound.'
'Our energy trading track record has confirmed the value in our unique approach and several current and prospective investors have therefore asked us to accept direct investments in that single strategy. We are delighted to oblige with the launch of the Cumulus Energy Fund, which will continue to target high returns with low correlation to commodity market indices or other energy funds. We naturally remain wholly committed to the multi-strategy Cumulus Weather Fund, which will continue to incorporate the same energy trades as the Cumulus Energy Fund."
Dr Joaquin Narro, Portfolio Manager, said: "Our proprietary fundamental models allow us to identify relative value and directional opportunities across all energy commodities. We currently see excellent opportunities across many markets, for example in several European electricity markets.'
The Cumulus Energy Fund's capacity is initially limited to USD 75m. Brewer added: "With high return and risk expectations, it is in everyone's interest that the asset growth of the Fund be carefully controlled.