Deutsche Bank adds Nordic power market to hedge fund platform
Deutsche Bank has added Sweden’s Coeli Power Surge strategy to its dbSelect platform for accessing hedge fund strategies.
The strategy taps into price trends caused by weather patterns in the Nordic countries, with the manager trading on the Nasdaq OMX Commodities exchange.
Coeli Asset Management is an independent Swedish manager, which offers managed funds across various alternative asset classes. It targets clients such as institutions, other asset managers, private banking and private equity.
Adding the strategy takes the total available via the dbSelect platform to 150, across managed futures, CTAs, currency, global macro, volatility arbitrage and commodities. The platform currently has some $4.5bn under management. Adding Coeli’s strategy and hitting the 150 mark represents a a milestone, according to Hans Feder, head of dbSelect at Deutsche Bank.
“This is the first time we have offered exposure to the Nordic power market as investors and managers continue to be drawn to the liquidity and transparency benefits of managed accounts.”
Henrik Wennberg, managing partner and portfolio manager at Coeli said: “Power markets in general are expected to show higher correlation to macro economic developments, however the unique quality of our strategy is that the dominant price driver – the Nordic weather – is a parameter that leaves nearly all other markets unaffected. Our strategy therefore allows investors to gain exposure to a market that is expected to show low correlation with other mainstream investment opportunities.”