Bursting with energy


Hedge funds have been grappling with the thorny issue of modelling energy volatility with varying degrees of success since the demise of Enron in December 2001. The energy behemoth‘s collapse together with the exit of other merchant energy companies left the US energy market fragmented and with decreased liquidity, effectively offering opportunities for sophisticated hedge funds keen on exploiting the status quo.

Traditionally the merchant energy trading space has been well looked after in t

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