As Ernest Hemingway once observed, change happens “gradually, then suddenly.” For the team at renewables-focused asset manager Proxy P, a period of weak performance has recently given way to a sharp rebound. After two challenging years and a subdued start to 2025, Proxy Renewable Long/Short Energy has staged a six-month recovery, delivering a cumulative gain of 57 percent through the end of October and returning among this year’s top ten performers in the Nordic hedge fund industry.
The long/short, energy-transition-focused fund gained 5.7 percent for its SEK share class in October, extending its six-month return to more than 57 percent. This brought its year-to-date performance through the end of October to 22.8 percent. While the recent surge marks a powerful recovery, strong performance is nothing new for Proxy P. The fund advanced about 45 percent in its first full year in 2019 and about 83 percent the year after. The latest rebound signals a clear turnaround following two difficult years for renewable-energy and clean-tech equities. Since its launch in December 2018, the fund has returned a cumulative 153 percent, corresponding to an annualized return of 14.4 percent, substantially outperforming the sector.
“We remain constructive and maintain a high net exposure,” says lead portfolio manager Jonas Dahlqvist, noting that Proxy Renewable Long/Short Energy held a net exposure of 82 percent at the end of October. “After four weak years, we consider it appropriate to keep an elevated allocation to the sector again,” he adds. “Many companies have reported results that, while not particularly strong in absolute terms, show clear signs of improvement, especially in forward-looking management commentary and order intake.”
“We remain constructive and maintain a high net exposure. After four weak years, we consider it appropriate to keep an elevated allocation to the sector again.”
Jonas Dahlqvist, Lead Portfolio Manager at Proxy P.
According to Dahlqvist, the sector maintained solid momentum in October, though gains moderated compared with the preceding months when renewable and energy-technology stocks had sharply outperformed broader equity markets. “Part of the explanation lies in the rebound in overall risk appetite and the fact that the Mag7 companies, supported by robust earnings, drove much of the market gains,” explains Dahlqvist. However, the positive narrative for the renewable energy and energy technology sectors remains intact.
“We acknowledge that the path ahead won’t be linear or problem-free, but for now, we believe it would be premature to go against the trend.”
Jonas Dahlqvist, Lead Portfolio Manager at Proxy P.
“Investment in AI continues at an unprecedented pace, and as AI expands, so does the need for power,” says Dahlqvist, pointing to a structural driver supporting the sector. Looking ahead, he and the team at Proxy P acknowledge that the recovery and current momentum is unlikely to follow a straight path. “We acknowledge that the path ahead won’t be linear or problem-free, but for now, we believe it would be premature to go against the trend.”
