UK hedge fund Helikon Investments is reaping major rewards in 2025 after making a bold contrarian bet on Poland’s long-ignored coal utility sector, with the firm’s Long Short Equity Fund Master ICAV up 36% year-to-date, according to a report by Bloomberg.
That performance, which outs it ahead of 99% of peers, is due to early positioning in companies such as Tauron Polska Energia and Enea SA.
Helikon began building exposure in late 2024, betting that the sector – shunned for years due to regulatory burdens, lack of dividends, and EU climate mandates – was due for a re-rating. That call proved prescient, with Warsaw’s WIG-Energy index having surged 80% in 2025, far outpacing both the WIG20 and European utility benchmarks.
The rally was sparked by Tauron’s surprise plan to reinstate dividends for the first time since 2015, followed by similar moves from peers like Enea. The sector also secured ultra-low-interest loans from EU recovery funds, which, combined with improving earnings and green transformation plans, helped restore investor confidence.
Helikon now holds a 12% stake in Tauron valued at around $503 million. Tauron’s shares have more than doubled in 2025, while Enea is up 60%. Despite the ongoing risks tied to coal exposure, analysts believe the industry’s shift toward profitability amid regulatory support is making Polish utilities investable again.
While still trading at a steep discount to European peers – 5x forward earnings vs 14x for the Stoxx Europe 600 Utilities – analysts see further upside, assuming policy support continues. Poland’s largest utility, PGE SA, has projected a tripling of profits over the next decade as it exits coal.
