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Alternative Market Briefing

Revisiting the Corona Fighters

Tuesday, December 15, 2020

B. G., Opalesque Geneva:

We revisit some of the original Corona Fighters - hedge funds and alternative asset managers who successfully protected assets and outperformed the markets during the first months of 2020 - and see how they are doing at the end of the year.

The carbon fund

The World Carbon fund invests across multiple liquid and regulated carbon markets, with the objective to generate absolute returns with a low correlation to traditional asset classes and to have a direct impact on climate change. Launched in March 2020, it was up 2.70% in November, 5.11% YTD.

"The European Carbon market experienced large gains with prices rising more than 20% after having declined by 17% in the prior two months," says a manager commentary seen by Opalesque. "This brought the price back to Euro 29/Tonne which is approaching the key level of 30 Euros hit briefly in July, August, and September, with the market retracing significantly on each occasion. The price is now also towards the upper end of the fuel switching range which may provide further upside resistance. The US Carbon markets were mixed with the California market experiencing a drop of 0.7% while the RGGI carbon market rallied by 3.5%. The three markets experienced a record value traded of more than $35 billion in November."

With Michael Azlen, CEO of UK-based Carb......................

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