Stockholm (NordSIP) – On August 16, Stockholm-based asset manager Coeli announced launches a new climate-focused, market neutral energy fund – Coeli Energy Transition – that aims to influence the climate in the right direction and at the same time protect capital in the event of a downturn.
Coeli is a Swedish asset manager with SEK 20 billion of AUM specialised in actively managed funds in equities, fixed income, hedge, real estate and private equity. Coeli Energy Transition is a market-neutral energy equity fund seeking to produce high risk-adjusted returns that are uncorrelated to both market and commodity price risk.
The fund focuses on energy companies in North America and Western Europe as well as companies in other sectors that are impacted by the ongoing energy transition. The fund’s research process is centered around a top-down analysis of supply and demand in the sub-sectors, complemented with detailed bottom-up analysis to identify winners and losers within the many sub-sectors of the energy sector. The portfolio is generally composed of 60 to 80 individual equities divided into investment themes.
“Energy has long been one of the most volatile sectors in the S&P 500,” explains the press release from Coeli. “What we now see is that the energy conversion, driven by cost-effective technology and active climate debate, is increasing the pressure on the fossil industries to focus their investments on shorter cycles. When the oil price cycle is shortened, the spread of equities development in the subsectors increases, and this is the fund Coeli Energy Transition has specialized in to take advantage of.
The Coeli Energy Transition fund was set up by Vidar Kalvoy and Joel Etzler who worked together for the past seven years, most recently at Horizon Asset LLP, a London-based hedge fund. is the responsible manager and founder of Coeli Energy Transition. Kalvoy holds an MBA from IESE and an MSc from the Norwegian School of Economics and has worked as a manager and an analyst at several funds in Oslo, London and Frankfurt. For the last nine years, he was responsible for the energy investments at Horizon Asset. Prior to working with Kalvoy at Horizon Asset LLP, Etzler spent five years in Private Equity at Morgan Stanley in London. He holds an MSc from KTH and started his career in the technology at Swedbank Robur in Stockholm 13 years ago.
“We not only offer a climate-focused fund with a negative carbon footprint, but also hopefully a high risk-adjusted return through our market-neutral strategy,” says Joel Etzler, manager.
With 87% of global energy consumption still coming from fossil fuels and an estimated 10-15 years left to avoid a 2°C global warming scenario in the future the Coeli Energy Transition seeks to motivate fossil fuel companies to invest in renewable energy.
“We need to influence the fossil industry to do more than reduce emissions from fossil energy sources – we need to convince them that they will use their large capital to invest in renewable energy,” says Vidar Kalvoy, responsible manager.
“At Coeli, we want to offer our investors a climate-secure portfolio with a negative carbon footprint where their invested capital helps drive the large energy conversion from fossil to renewable. Therefore, the Coeli Energy Transition Fund has taken the position of always being negatively exposed to the fossil industry,” concludes the press release.
Picture courtesy of Coeli