5 Investment Themes for 2009 (& Firms That Should Benefit) #5: Flurry of New Green Funds
Submitted by EnergyTechStocks.com
Editor’s Note: In keeping with its mission to be solely a new source, this EnergyTechStocks.com Special Report is presented for information purposes only.
Posted: October 31, 2008
Since EnergyTechStocks.com began publishing in the summer of 2007, its list of mostly clean and green energy mutual and exchange-traded funds (ETFs) has doubled and now numbers about two dozen.
In 2009 the list should get even longer, based on a new survey of socially-conscious investment companies that found nearly three out of four definitely or possibly plan to introduce new green investment vehicles in 2009.
In reporting the results of its survey, the Social Investment Forum included the comments of certain respondents. Of particular interest was the assessment of Adam Seitchak, lead portfolio manager, Green Century Balanced Fund, and chief investment officer, Trillium Asset Management. Seitchak said, “Clean energy stocks have been crushed this year despite the fact that revenues and profits are growing rapidly. However, we believe that despite the increased risks associated with the credit crisis, the fundamentals of these firms are so strong that they will find necessary financing to continue growth.”
Seitchak was particularly bullish on the prospects of solar companies. “Among the solar stocks we follow,” he said, “revenues are likely to rise between 60 and 140% this year and between 45 and 200% next year, and most of the companies are now solidly profitable. Plunging stock prices have improved their valuations dramatically to between 10 and 20 times earnings. These are extraordinarily attractive valuations for fast-growing companies even if the earnings estimates come down due to slowing economies and the credit crisis.”
That makes at least two green sectors that have received unconditional support from fund managers specializing in them since the credit crisis started roaring. The other is water, whose leading fund manager, Neil Berlant of the PFW Water Fund, says is in the best investment climate in more than 25 years.
For Parts 1-4 of this series please go to:
5 Investment Themes for 2009 (& Firms That Should Benefit) #1: Wind Power Should Stay Strong
5 Investment Themes for 2009 (& Firms That Should Benefit) #2:145,000+ Miles Of HV Wire to String
5 Investment Themes for 2009 (& Firms That Should Benefit) #3: CFL Sales Should Soar Higher
5 Investment Themes for 2009 (& Firms That Should Benefit) #4: Geothermal Gushes
For more on clean energy funds please see:
