Hedge funds that expanded into UK natural gas and German electricity have made big gains this year from the European energy crisis and sharp moves in specialist commodity markets, with one fund soaring more than two-fifths.
Man Group and Leda Braga’s Systemica Investments are among the firms whose top-performing portfolios have been well placed to profit from soaring gas prices in recent months, sparked by supply shortage fears. Natural gas prices in the UK alone have rocketed from just under 60 pence per therm at the end of April to more than 180 pence this month.
“The European power complex is one of the strongest trends I’ve seen in years, and I don’t even know if it’s over,” said Doug Greenig, a former chief risk officer at Man Group’s AHL unit who now runs London-based hedge fund Florin Court Capital.