The Norwegian managed futures fund Interkraft Energy Fund is the best performing hedge fund in the Hedgenordic NHX hedge fund index with respect to pure return in February. The fund punched in a healthy 5.14% return for the month, settling it at a solid 9.23% YTD.
The fund is managed by Interkraft Capital Management ASA and is the worlds first managed electricity futures fund. It launched in 2001. It has an inception to date return of 97.56%.
The investment strategy of the fund is solely based on the trading of cleared financial contracts on Nord Pool, The Nordic Power Exchange, the world’s first international commodity exchange for electrical power.
Interkraft Capital Management has a multi-strategy approach for the Interkraft Energy Fund. Trading occurs within three main strategies; Fundamental trading, opportunistic trading and system trading. The funds annualized target return is 15% or higher with a standard deviation of 15% or lower.
Interkraft Energy Fund (EUR) gained 5.14% in February 2006 with an average dVaR exposure of 1,00% (95% confidence),” said Dag Rosmo, Managing Partner at Interkraft Capital Management ASA. “Our asset management target is to keep monthly draw-downs limited to -5% and to keep volatility (annualised monthly returns) below 10%.”