Several former Exelon Power Team energy derivatives structurers are launching what they believe will be one of the first hedge funds to take positions in energy derivatives. The fund, to be called GingerBread Man Partners, will begin by trading liquid exchange-traded options, such as natural gas and heating oil contracts on the New York Mercantile Exchange. Once it grows to about USD10 million under management, it will be able to trade off-exchange exotics, for example, best-of options and spark spread options, as well as more standardized over-the-counter products, Tamir Druz, partner and managing director in Philadelphia, told PFR sister publication Derivatives Week.
July 16, 2002