London-based CF Partners plans to launch a EUR 50 million (US$70.06 millio) hedge fund in early 2009 to take advantage of volatility in the carbon markets, according to a Reuters report.
This marks a new stage in the development of relatively young carbon markets, which until now have been used primarily to address long-term compliance needs.
"To date in the carbon space the majority of the players from a fund point of view have been long-only guys," Simon Glossop, one of CF's founders, told Reuters. "That's been a workable model up to this year, but carbon has now become an asset class in its own right instead of a compliance tool."
The global carbon market is expected to be worth $100 billion this year, and recent volatility has created an environment that is ripe for shorting.
Read the full report at the link below.
