By Lars Paulsson – May 28, 2010
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Energy Capital Management BV, an Amsterdam-based hedge fund manager, decided to shut down its MMT Energy Fund by the end of the month after it didn’t achieve targeted returns, Chief Executive Officer Marcel Melis said today by e-mail.
MMT’s assets under management peaked above $100 million with investments from more than 50 institutional investors. The MMT Energy fund returned 10 percent in 2007 and 24 percent in 2008. It fell 7 percent in 2009 and 5 percent this year through April, according to Bloomberg data.
The fund was profitable overall, said Melis, the founder. MMT traded European energy commodities including German power, emission permits and U.K. natural gas, coal and oil.
“Our previously successful relative value strategy, a combination of location spreads, time spreads, cross commodity spreads and not too much directionality, has proven not to have been effective for European energy markets over the past 14 months,’’ Melis said in an e-mail to investors dated May 26.
He has been contacted by “several parties’’ about new opportunities, he said, without providing details. The fund began trading in October 2006.