Remember a few weeks back when-- OMG!-- it snowed a few inches and nobody would shut the hell up about it? These people actually did something productive about it, other than coining terms like 'snowpocalypse.'
“To put it simply, we were bullish on the weather,” Henrik Wennberg, a portfolio manager, said in a telephone interview from Zurich. “We saw this already in the middle of December and started buying then to take long positions.”
Plenum Power Surge, the hedge fund managed by Plenum Investments AG in Switzerland, returned 19 percent in the first two months of the year after betting on an increase in Scandinavian electricity prices. Prices in the Nordic electricity market, where Plenum has 68 million euros ($92 million) invested in two funds, jumped to records as temperatures reached the lowest since 1987 in Sweden and consumption rose to a record in Norway, forcing industrial consumers to reduce demand to prevent blackouts.