Trading the energy markets

As in most commodity markets financial contracts are used to hedge and manage risk for power producers, industrial companies and electricity distributors. Investment managers are trading financial contracts in order to create value and profit as in any other derivatives market.
Turnover in the Nordic power market was approximately 3400 TWh of financial power contracts in 2011.

Energy management

Energy management follows the same principles as traditional capital management. The difference is that NEF´s managed assets are invested in energy commodities as opposed to traditional asset (e.g. stocks).

Energy portfolios as conducted by NEF is mainly focused on the European power markets and the oil and gas markets. NEF´s philosophy is to create value for our clients by identifying and investing in outstanding energy traders. These typically trade derivatives products enabling making profit on volatility and price movement in either direction.
NEFs multi manager funds invest in energy traders with a proven track record who has a substantial amount of money invested in addition to that of NEF. NEF invests in decisive and responsive smaller organisations. Selecting investment managers involves a rigorous screening process and thorough evaluation, extensive, qualitative analysis of a manager’s strategy is a key factor in determining potential investments.