Coeli launches new climate-focused, equity market neutral energy fund.
Recent major advances in alternative energy have changed the dynamic in the energy sector and made it one of the most attractive sectors for equity market neutral funds. This, in combination with the record-long bull market, has led us to establish a new partnership with two experienced and successful asset managers from London. We offer a climate-focused, equity market neutral energy fund – Coeli Energy Transition – that will have a positive impact on the climate and at the same time protect capital in the event of a downward market shift.
Historically, energy has been one of the most volatile sectors in the S&P 500. For some time, the energy transition, which is accelerated by cost-effective technology and intensifying climate debate, is increasing the pressure on the fossil fuel industries to focus their investments towards shorter cycle projects. When the oil price cycle is shortened, the spreads between stocks within the energy sector rises. The Coeli Energy Transition fund is specialized in taking advantage of this change in dynamics.
“We are not only offering a climate-focused fund with a negative carbon footprint, but also hopefully a high risk-adjusted return through our equity market neutral strategy, says Joel Etzler, Portfolio Manager.
If climate scientists are correct, and we have 10-15 years to avoid 2-degree Celsius warming in the future, we cannot solely rely on renewable energy. To this day, 87% of global energy demand still comes from fossil fuels; it is in the fossil fuel industry where investors can have the biggest impact on the climate.
“We need to influence the fossil industry to do more than reducing emissions from fossil fuels – we need to convince them to use their large capital to invest in alternative energy,” concludes Vidar Kalvoy, Lead Portfolio Manager.
At Coeli, we would like to offer our investors a climate-secure portfolio with a negative carbon footprint where their invested capital helps drive the large energy transition from fossil fuels to renewable energy. Therefore, the Coeli Energy Transition Fund is committed to at all times be negatively exposed to the fossil industry.
The fund will be launched on August 16.
Out Asset Managers
Vidar Kalvoy and Joel Etzler have worked together for the past seven years, most recently at Horizon Asset LLP, a London-based hedge fund. Today they are shifting their focus to the Nordic region continuing their investment strategy in coalition with Coeli.
Vidar Kalvoy is the Lead Portfolio Manager and Founder of Coeli Energy Transition. For nine years, he was responsible for the energy investments at Horizon Asset. Kalvoy has also managed energy investments for another London-based hedge fund and worked as an equity analyst in the technology sector in both Frankfurt and Oslo. Vidar holds an MBA from IESE and an MSc from the Norwegian School of Economics.
Joel Etzler is the Portfolio Manager and Founder of Coeli Energy Transition. He started working with Kalvoy at Horizon Asset in 2012 and previously spent five years in private equity at Morgan Stanley in London. Etzler began his investment career in the technology sector at Swedbank Robur in Stockholm in 2006. Joel holds an MSc from KTH.