|
MMT Energy Fund (launched in October 2006) is a multi-commodity, relative value fund which researches and trades power and its' component commodities (gas, coal, carbon, oil) in the inefficient European energy matrix.
The Fund is managed by Amsterdam-based Energy Capital Management. The fund targets absolute annualized volatility (using daily return data) of between 10 and 15%.
We seek absolute positive returns every month. Strategy is capable of 30%+ returns in a good year. Conversely, a 10% return year would be considered disappointing. The modest level of volatility (as compared to other energy hedge fund peers) is achieved via:
- Relative value research mindset
- Trade expression in the forward market
- Avoiding the volatile/unpredictable spot markets
- Seeking trades with attractive "optionality" - i.e. those with modest downside/significant upside
- Tactical trading around core strategic positions
The strategy exhibits very low correlation to traditional/non-traditional indices, other energy hedge funds and oil.
|
