Coeli SICAV I - Energy Transition

Investment Objective

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. It aims to take advantage of the increased volatility and dispersion in the energy sector caused by the disruption from alternative energy and the shift in public opinion against the fossil fuel industry. The fund is committed to have a negative exposure to the fossil fuel industry at all times.

Latest Meeting Note

Meeting 22 Nov 2019

The research team met with Coeli at a cap-intro conference. The Coeli Energy Transition Fund is a market neutral strategy seeking to maximize absolute returns by trading the high level of cross-sectional dispersion in the global energy s... Read more

The research team met with Coeli at a cap-intro conference. The Coeli Energy Transition Fund is a market neutral strategy seeking to maximize absolute returns by trading the high level of cross-sectional dispersion in the global energy space, with a mandate of running negative exposure to oil, gas and coal (i.e. explicitly capitalizing on the energy transition from fossil fuels to sustainable alternatives). In addition to a rigorous bottom up company analysis, the research process has a strong focus on sub-sectors' cycle analysis (supply and demand) to identify trading opportunities. In fact, within the energy universe it is common to have multiple sub-sectors that are exposed to similar core drivers but have different business cycle dynamics largely due to the wide span of asset lives and supply responses. By running a market neutral book, the manager is able to minimise commodity and systematic risk exposure, while maximizing alpha. The mandate is global investing mainly in Europe and the US. The portfolio is typically constructed around ten themes (each made up of about 10 pair trades which are implemented either within the same sub-sector or between sub-sector) and has a reasonable short investment horizon: 3-24 months for core positions, with the manager actively trading around these positions to take advantage of sectors’ high volatility and news flow (catalyst driven trading philosophy). Gross exposure ranges from 150% to 250%, while net exposure targets neutrality at currency, commodity and market level and fluctuates between -/+10% at portfolio level.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2018 0.6 0.8 0.0 0.6 0.3 0.8 0.3 0.0 0.9 0.2 0.1 0.6 0.8
2017 0.5 0.5 0.6 1.0 0.2 0.4 0.6 0.0 0.2 0.1 0.8 0.1 0.1

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Close Current Site Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.