Hedge funds including Third Point, Makuria Investment Management and Odey Asset Management have reaped a windfall from coal’s renaissance as they embrace a fossil fuel that many investors have shunned in the battle against climate change. The shares of coal-mining groups have soared as the price of thermal coal has more than tripled in less than two years, propelled by the energy crisis and Russia’s full-scale invasion of Ukraine.
“It’s become a seasonal trade. Coal is very geared to natural gas, which is very geared to the weather. We’ve avoided an energy crisis [in Europe] this year, but we may not be so lucky next year."
https://www.ft.com/content/e77d9d41-ec1c-4ce4-9c1c-d5e05025a482