Cumulus Energy rides renewables revolution to deliver outsized gains

Fri Sep 21, 2012

Energy and weather derivatives specialist Peter Brewer’s high-octane energy futures strategy is gaining traction with investors again after a stunning 100% return in 2011

Peter Brewer
With high levels of volatility and market correlation having played havoc with hedge fund returns in recent years, many of the best performers have been niche funds pursuing eclectic and specialist investment strategies in under-exploited markets.

The Cumulus Energy Fund is a case in point. Launched in 2006, the energy futures trading fund has produced an annualised return of 28% since inception and had its best year so far in 2011 – making an astonishing 99.64% at a time when many hedge funds were struggling simply to end the year in the black.

That impressive annual return, on a Sharpe ratio of 1.64, was more than enough to secure victory in the smaller and emerging manager category at the EuroHedge Awards in January. But the fund has made far less dramatic progress this year. An inherently volatile strategy, it is currently down 5.85% for the year year after losing...

ISSN: 2151-1845 / CDC10004H

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