EIC initiated new positions in Iberdrola, Scottish Power and Suez in Europe and in the California utility Sempra Energy. Profits were taken in the U.S., where exposures in Dominion, Entergy and Cinergy were reduced.
Continental Europen power prices have come back from their highs in September and July. The SWEP traded between 35-40 EUR/MWh. Eastern power prices in the U.S. remained flat while western prices (Palo Verde) increased above the $35/MWh level.
Power prices in Centrl Europe continued their upward trend with the Swiss Electricity Price Index (SWEP) averaging 55 EUR/MWh during the third quarter. This represents an increase of 72% over last year's period.
In August particular focus was set on the creation of a well-diversified recovery sub-portfolio. The rationale for the portfolio was to invest in fundamentally undervalued companies that have corrected due to liquidity concerns.