Lombard Odier targets carbon markets with new fund

Lombard Odier Investment Managers has launched a Global Carbon Opportunity fund as it sees the market as "one of the most exciting investing opportunities" in the area of sustainable investment.

The fund will be managed by Callum Lee, a portfolio manager who joined the firm in August this year from Altana Wealth, where he was head portfolio manager of global carbon and head of quant trading.

Lee will work with the head of climate and environmental solutions, Lorenzo Bernasconi, and the firm's chief carbon and environmental markets strategist, Ruben Lubowski.

The team will use absolute return trades along with "a broad set of instruments" to "capitalise on market inefficiencies".  

Bernasconi commented: "We are seeing growing and more ambitious climate commitments, covering over 90% of global GDP, and an increasing proportion of these are legally binding.

"Carbon markets are a mission critical policy tool for meeting government and corporate climate commitments and are trading at a deep discount to where they need to be."