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Nordic Power Trading posts 12% return despite volatility

Power

24 Jan 2022 14:16

Oslo

24 Jan 2022 14:16

(Montel) Denmark-based Nordic Power Trading made a return of 11.6% on investments last year, with the size of its fund rising 26% to DKK 129m (EUR 17m), it said on Monday, despite regional trading volumes hitting a two-decade low.

“We are very satisfied with last year’s return, as the high volatility in the second half of the year made market conditions very risky,” CEO Bjarne Walbech told Montel.

“Our focus is on futures trading, though our exposure in the different markets vary with where we see the best opportunities,” he added, with the firm traditionally making strong returns on Nordic power but having expanded into the French and German power as well as carbon.

Walbech – who founded the company in 2007 and had seen an average annual return of 9% – was concerned about the persistent trend of falling liquidity in the Nordic financial market.

Financial trading volumes in the region hit a 23-year low of 802 TWh last year.

Spread risk
“It’s not positive that liquidity is falling. We also see less funds now active in the market than in the past. For us it has been an advantage to spread our exposure to more markets,” he said.

Investors had put DKK 129m of money into Nordic Power Trading’s fund by the end of last year, up from DKK 110m a year earlier. The long-term target is DKK 250m

“We aim for more growth, both in terms of trading volumes and number of employees,” said Walbech.

The firm moved into a new office in Kolding, western Denmark, last year. It also hired Steffen Nielsen as junior trader on 1 January, supplementing Walbech and senior trader Henrik Eriksen.

(EUR 1 = DKK 7.44)

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