Trading the absence of an invisible gas using complex, computer modeled, financial engineering built on a base of climate computer models? Yeah, I can probably figure out a profitable strategy, or two.
London-based CF Partners will launch early next year a new 50 million euro ($70.06 million) hedge fund aiming to profit from volatility in carbon markets.
The European Union's emissions trading scheme may be a surer investment following final EU endorsement on Wednesday of climate goals reaching out to 2020, and recent volatility in commodities markets has opened shorting opportunities."To date in the carbon space the majority of the players from a fund point of view have been long-only guys," said Simon Glossop, one of CF's founders. "That's been a workable model up to this year, but carbon has now become an asset class in its own right instead of a compliance tool....MORE