(Bloomberg) Getting the weather right was key to Nordic electricity investment companies posting bigger returns than most hedge funds last year.
Nordic Power Trading in Kolding, Denmark, led gains with a 15 percent return, followed by Shepherd Energy Portfolio in Stockholm on 14 percent, according to reports on their websites. That’s more than five times the global hedge fund industry’s average gain last year, according to Hedge Fund Research Inc. Low hydropower reservoirs and forecasts for a cold winter pushed up wholesale Nordic power prices by 71 percent between September and November before unusually wet and windy weather caused rates to plummet in a region that typically gets more than half its electricity from water.
