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2007/10/18
The Energy Hedge Fund Center, LLC has announced that it is now tracking over 600 energy and Recent trends include the growth of carbon and environmental energy funds and, as the total universe of energy hedge funds has grown and matured funds of hedge funds in the energy and environment sector.
Dr. Gary M. Vasey, co-founder of the Energy Hedge Fund Center, LLC said, "Our breakthrough study of hedge funds in energy issued in late 2004 identified 180 hedge funds, mostly equity long/short and commodity trading vehicles. Since then, the directory has grown three-fold and the types of strategies followed by hedge funds in energy and environment has also grown and matured."
"Today, nothing much has changed in terms of the attractiveness of all aspects of the energy industry for investors and that is reflected in the growing number of hedge funds that operate in the various energy markets and sectors."
Peter C. Fusaro, co-founder of the Energy Hedge Fund Sector and chairman of Global Change Associates in New York said, "We expect more energy commodity and green funds for 2008!.....Despite well publicized energy hedge fund blow ups, we continue to see more investors deploying capital in the energy and environmental sector. We also see the closure to investors of some larger funds and niche strategies which leads to more opportunities for new fund managers in this dynamic sector,"
Since its launch in October 2004, the directory has constantly grown reflecting investor appetite for energy oriented hedge funds.
Dr. Gary M. Vasey, co-founder of the Energy Hedge Fund Center, LLC said, "Our breakthrough study of hedge funds in energy issued in late 2004 identified 180 hedge funds, mostly equity long/short and commodity trading vehicles. Since then, the directory has grown three-fold and the types of strategies followed by hedge funds in energy and environment has also grown and matured."
"Today, nothing much has changed in terms of the attractiveness of all aspects of the energy industry for investors and that is reflected in the growing number of hedge funds that operate in the various energy markets and sectors."
Peter C. Fusaro, co-founder of the Energy Hedge Fund Sector and chairman of Global Change Associates in New York said, "We expect more energy commodity and green funds for 2008!.....Despite well publicized energy hedge fund blow ups, we continue to see more investors deploying capital in the energy and environmental sector. We also see the closure to investors of some larger funds and niche strategies which leads to more opportunities for new fund managers in this dynamic sector,"
Since its launch in October 2004, the directory has constantly grown reflecting investor appetite for energy oriented hedge funds.
2007/06/08
Financial News is holding a one-day conference on June 11 2007 in London. Talks include SunGard's Kiodex on diversification, hedge fund GreenHaven LLC on opportunities in agricultural and a closing keynote from Jean Marc Bonnefous of energy hedge fund Tellurian Capital LLC. For more information, go to www.efinancialnewsevents.com/investcommodities07sungard/.
After the conference at 17:30, Kiodex is then holding a networking event for hedge funds and investors, which will include the opportunity to learn more about new Kiodex functionality for LME, European energy markets, ags and renewables. For more information on the evening event, email info@kiodex.com.
A synopsis of the SunGard Kiodex talk to be presented at the conference:
SunGard Kiodex has spoken with over 40 different funds of funds investors as they have done due diligence on our 22 commodity edge fund clients. The funds of funds are very vocal about what information they would like their hedge funds to generate from their trading and risk system. With commodity hedge funds a primary market for Kiodex trading and risk management solutions, these fund of funds have also served as an invaluable resource on new funds or growing funds in the space and the strategies and trends.
The trend for diversification both geographically and by product is undeniable based on the Kiodex hedge fund customer base, the broader world of funds represented in conversations with funds of funds, announcements of new funds and from fund data gathered by the Energy Hedge Fund Center. From these sources, some key data points emerge:
1. New market entrants in the commodity hedge fund space are coming largely from Europe as opposed to the past dominance by US entrants.
2. Funds are employing a wider array of commodity strategies, e.g. power, freight, agricultural products, coal and weather derivatives.
3. Funds are entering “green” commodity strategies, e.g., trading in ethanol and emissions.
4. New flavors of relative value strategies are on the upswing, such as strategies related to the spread between ethanol and corn prices, or emissions and energy prices.
5. Funds are increasingly adding exposure to physical products, either through the fund or a related entity. This physical trading is itself driven by a diversity of motivations, from adding an added source of returns, to maintaining an understanding of the fundamental markets, to ensuring that financial positions that settle into physical products can be covered.
One fund exemplifies the last three of these five points - expansion of new relative value, green and physical strategies. Hedge fund GreenHaven LLC is a fundamentals-driven commodity fund with relative value and directional energy and agricultural strategies, as well as relative value plays between energy and agricultural products. As a fundamentally driven fund, they rely first and foremost on understanding of the underlying markets, rather than technical analysis and quantitative models, to make decisions on entering, exiting or modifying positions. By employing both directional and relative values strategies, they, respectively, take bets on given prices or volatilities going up or down and take bets on the spread between two instruments representing different time periods, locations, or products. Through activity in a related business, they broker storage deals physical corn and natural gas that are their own source of revenue in addition to providing a deeper understanding of the pricing and demand for corn and natural gas.
After the conference at 17:30, Kiodex is then holding a networking event for hedge funds and investors, which will include the opportunity to learn more about new Kiodex functionality for LME, European energy markets, ags and renewables. For more information on the evening event, email info@kiodex.com.
A synopsis of the SunGard Kiodex talk to be presented at the conference:
SunGard Kiodex has spoken with over 40 different funds of funds investors as they have done due diligence on our 22 commodity edge fund clients. The funds of funds are very vocal about what information they would like their hedge funds to generate from their trading and risk system. With commodity hedge funds a primary market for Kiodex trading and risk management solutions, these fund of funds have also served as an invaluable resource on new funds or growing funds in the space and the strategies and trends.
The trend for diversification both geographically and by product is undeniable based on the Kiodex hedge fund customer base, the broader world of funds represented in conversations with funds of funds, announcements of new funds and from fund data gathered by the Energy Hedge Fund Center. From these sources, some key data points emerge:
1. New market entrants in the commodity hedge fund space are coming largely from Europe as opposed to the past dominance by US entrants.
2. Funds are employing a wider array of commodity strategies, e.g. power, freight, agricultural products, coal and weather derivatives.
3. Funds are entering “green” commodity strategies, e.g., trading in ethanol and emissions.
4. New flavors of relative value strategies are on the upswing, such as strategies related to the spread between ethanol and corn prices, or emissions and energy prices.
5. Funds are increasingly adding exposure to physical products, either through the fund or a related entity. This physical trading is itself driven by a diversity of motivations, from adding an added source of returns, to maintaining an understanding of the fundamental markets, to ensuring that financial positions that settle into physical products can be covered.
One fund exemplifies the last three of these five points - expansion of new relative value, green and physical strategies. Hedge fund GreenHaven LLC is a fundamentals-driven commodity fund with relative value and directional energy and agricultural strategies, as well as relative value plays between energy and agricultural products. As a fundamentally driven fund, they rely first and foremost on understanding of the underlying markets, rather than technical analysis and quantitative models, to make decisions on entering, exiting or modifying positions. By employing both directional and relative values strategies, they, respectively, take bets on given prices or volatilities going up or down and take bets on the spread between two instruments representing different time periods, locations, or products. Through activity in a related business, they broker storage deals physical corn and natural gas that are their own source of revenue in addition to providing a deeper understanding of the pricing and demand for corn and natural gas.
2007/04/30
The Energy Hedge Fund Center, LLC (www.energyhedgefunds.com) is now tracking more than 560 energy and environmental hedge funds in its Directory of Energy Hedge Funds. The Energy Hedge Fund Center web portal continues to attract substantial hedge fund and investor investor this year with growing web traffic and directory entries.
New York, NY (PRWEB) April 19, 2007 -- The Energy Hedge Fund Center, LLC (www.energyhedgfunds.com) is now tracking more than 560 energy and energy-related hedge funds in its Directory of Energy Hedge Funds. The vast majority of these energy focused hedge funds are based in North America but Europe is already home to 130 energy focused hedge funds and has been the focus for recent energy hedge fund formation. The directory is also now tracking more than 180 commodity funds that have exposure to energy and energy-related commodities.
"Recently, we have seen a renewed interest in the creation of fund of funds in the energy and natural resources sector," reports Dr. Gary M. Vasey, Co-Principal of the Energy Hedge Fund Center, LLC. "Perhaps as interestingly, there has also been a new wave of hedge fund formation focused on energy and other related commodities since the beginning of 2007. The issue however remains the lack of real energy industry expertise in the alternative investment sector. Investors should be warned that energy focused alternative investing is something of a 'fad' these days given the demand to invest in the energy industry and they should check investment managers energy credentials very carefully."
"We are also seeing substantial interest in the launch of larger green hedge funds and more significant growth of sustainability fund of funds this spring. We expect this trend to the accelerate as the US more toward carbon market mandates," said Peter Fusaro, Co-Principal of the Energy Hedge Fund Center LLC. "Energy and environmental hedge funds are still seen as an asset diversification play due to its noncorrelation."
The Energy Hedge Fund Center (EHFC) also publishes a subscription newsletter 'Energy Hedge' that tracks and announces new energy hedge funds, provides analysis of the Directory's content and includes energy hedge fund manager interviews. Both Energy Hedge and the Directory of Energy Hedge Funds can be purchased at the company's website -- www.energyhedgefunds.com.
Peter C. Fusaro and Dr. Gary M. Vasey, who jointly run EHFC, are also the authors of the book Energy & Environmental Hedge Funds -- The New Investment Paradigm (Wiley, 2006).
About the Energy Hedge Fund Center LLC
The Energy Hedge Fund Center LLC offers analysis and consulting services in energy and environment. It also provides the only online community tracking alternative investments in energy and environment at www.energyhedgefunds.com. It offers the directory of energy hedge funds as a subscription service and the popular online newsletter Energy Hedge. For more details contact EHFC at info @ energyhedgefunds.com.
New York, NY (PRWEB) April 19, 2007 -- The Energy Hedge Fund Center, LLC (www.energyhedgfunds.com) is now tracking more than 560 energy and energy-related hedge funds in its Directory of Energy Hedge Funds. The vast majority of these energy focused hedge funds are based in North America but Europe is already home to 130 energy focused hedge funds and has been the focus for recent energy hedge fund formation. The directory is also now tracking more than 180 commodity funds that have exposure to energy and energy-related commodities.
"Recently, we have seen a renewed interest in the creation of fund of funds in the energy and natural resources sector," reports Dr. Gary M. Vasey, Co-Principal of the Energy Hedge Fund Center, LLC. "Perhaps as interestingly, there has also been a new wave of hedge fund formation focused on energy and other related commodities since the beginning of 2007. The issue however remains the lack of real energy industry expertise in the alternative investment sector. Investors should be warned that energy focused alternative investing is something of a 'fad' these days given the demand to invest in the energy industry and they should check investment managers energy credentials very carefully."
"We are also seeing substantial interest in the launch of larger green hedge funds and more significant growth of sustainability fund of funds this spring. We expect this trend to the accelerate as the US more toward carbon market mandates," said Peter Fusaro, Co-Principal of the Energy Hedge Fund Center LLC. "Energy and environmental hedge funds are still seen as an asset diversification play due to its noncorrelation."
The Energy Hedge Fund Center (EHFC) also publishes a subscription newsletter 'Energy Hedge' that tracks and announces new energy hedge funds, provides analysis of the Directory's content and includes energy hedge fund manager interviews. Both Energy Hedge and the Directory of Energy Hedge Funds can be purchased at the company's website -- www.energyhedgefunds.com.
Peter C. Fusaro and Dr. Gary M. Vasey, who jointly run EHFC, are also the authors of the book Energy & Environmental Hedge Funds -- The New Investment Paradigm (Wiley, 2006).
About the Energy Hedge Fund Center LLC
The Energy Hedge Fund Center LLC offers analysis and consulting services in energy and environment. It also provides the only online community tracking alternative investments in energy and environment at www.energyhedgefunds.com. It offers the directory of energy hedge funds as a subscription service and the popular online newsletter Energy Hedge. For more details contact EHFC at info @ energyhedgefunds.com.
2007/03/15
EHFC will be conducting a new webinar on March 29th.
Since 2004 hedge funds, proprietary traders and Commodity Trading Advisers have been pouring investor’s assets in energy and more recently, environmental commodity markets. The financialization of energy markets has continued to impacted commodity prices and volatilities. With the recent fall in certain commodity prices and collapse of high profile commodity funds, many commentators have suggested that these players are exiting these markets. In reality, ‘speculative’ investors continue to be attracted to these markets and will be a true force to be reckoned with through 2007. But the energy industry continues to be fraught with risks.
During 2007, speculator strategies will continue to diversify and become more sophisticated to profit from energy and environmental commodity markets. Their entrance into these markets has been made considerably easier by the availability of liquid instruments traded on electronic exchanges and by exchange clearing mechanisms for OTC trading. In particular, regional European commodity markets are attracting new funds and assets while the environmental side of energy is attracting huge amounts of capital. Attendees will learn about these activities and about the attendant risks around these activities.
To register please visit http://www.pgsenergy.com/online/f114.html
Since 2004 hedge funds, proprietary traders and Commodity Trading Advisers have been pouring investor’s assets in energy and more recently, environmental commodity markets. The financialization of energy markets has continued to impacted commodity prices and volatilities. With the recent fall in certain commodity prices and collapse of high profile commodity funds, many commentators have suggested that these players are exiting these markets. In reality, ‘speculative’ investors continue to be attracted to these markets and will be a true force to be reckoned with through 2007. But the energy industry continues to be fraught with risks.
During 2007, speculator strategies will continue to diversify and become more sophisticated to profit from energy and environmental commodity markets. Their entrance into these markets has been made considerably easier by the availability of liquid instruments traded on electronic exchanges and by exchange clearing mechanisms for OTC trading. In particular, regional European commodity markets are attracting new funds and assets while the environmental side of energy is attracting huge amounts of capital. Attendees will learn about these activities and about the attendant risks around these activities.
To register please visit http://www.pgsenergy.com/online/f114.html
2007/02/10
We’ve entered year 4 of higher energy prices and the best Washington can come up with is more ethanol. This is not the answer. It’s time for change in thinking on both sides of the aisle. Government by press release and photo opportunity have gotten us into this energy and environmental quagmire. It’s now time for some fresh thinking.
Here are the facts. The US is the world’ largest energy consumer at over 20 million barrels per day of oil, 900,000 megawatts of power, over 250 million vehicles. The US is 23% of greenhouse gases. If you catch my drift, it’s an issue of scale. That involves time. The energy industry looks at decades and usually energy project stake 4 to 7 years to begin and complete.
The bottom line is no quick fix. We now need to discuss, purpose and implement a national energy and environmental strategy that incorporates all fuel choices, energy efficiency and balances that with environmental reality. The planet is heating up and the US as a the world’s largest economy can do something about it. The nonsense of adapting to climate change is defeatist and useless.
The US now stands at an energy and environmental cross roads with no easy way out. The time is to now propose significant long-term reductions in greenhouse gas emissions and marry that to the build out a clean energy infrastructure. Those economic choices will not be pristine. They require the acknowledgement that coal and nuclear are part of a renewable energy buildout. That advices IT energy controls and advanced batteries are all part of the new energy equation. They acknowledge that the private sector is waiting to “rebuild America’s energy infrastructure.” This all takes time and an engineering and financial skill set ready to build and finance.
The reality is that that will take decades, hundreds of billions if not trillions of dollars, and create more jobs than ever before particularly in a sector, energy, that has lost the most jobs since the oil price collapse of 1986. These new green jobs will produce the lower carbon footprint in clean technology that Americans are aching for, particularly young people in our universities. The leadership vacuum cries for the solutions now. The time is now for America to lead once again!
Peter C. Fusaro has worked on energy and environmental issues for 32 years.
Here are the facts. The US is the world’ largest energy consumer at over 20 million barrels per day of oil, 900,000 megawatts of power, over 250 million vehicles. The US is 23% of greenhouse gases. If you catch my drift, it’s an issue of scale. That involves time. The energy industry looks at decades and usually energy project stake 4 to 7 years to begin and complete.
The bottom line is no quick fix. We now need to discuss, purpose and implement a national energy and environmental strategy that incorporates all fuel choices, energy efficiency and balances that with environmental reality. The planet is heating up and the US as a the world’s largest economy can do something about it. The nonsense of adapting to climate change is defeatist and useless.
The US now stands at an energy and environmental cross roads with no easy way out. The time is to now propose significant long-term reductions in greenhouse gas emissions and marry that to the build out a clean energy infrastructure. Those economic choices will not be pristine. They require the acknowledgement that coal and nuclear are part of a renewable energy buildout. That advices IT energy controls and advanced batteries are all part of the new energy equation. They acknowledge that the private sector is waiting to “rebuild America’s energy infrastructure.” This all takes time and an engineering and financial skill set ready to build and finance.
The reality is that that will take decades, hundreds of billions if not trillions of dollars, and create more jobs than ever before particularly in a sector, energy, that has lost the most jobs since the oil price collapse of 1986. These new green jobs will produce the lower carbon footprint in clean technology that Americans are aching for, particularly young people in our universities. The leadership vacuum cries for the solutions now. The time is now for America to lead once again!
Peter C. Fusaro has worked on energy and environmental issues for 32 years.
2007/01/19
Below is an interview with Peter C. Fusaro from BusinessWeek Online. Its a good summary!
A Fast New Financial Game Called Energy
Energy consultant Peter C. Fusaro, chairman of New York-based Global Change Associates Inc. and co-founder of the Energy Hedge Fund Center, was among the first to notice the growing role of hedge funds and other financial players in the energy sector two years ago. He talked to Washington correspondent Lorraine Woellert about how the trend is contributing to price fluctuations and where it's going next.
Is the surge in oil futures trading exacerbating the market's ups and downs?
The Commodity Futures Trading Commission and New York Mercantile Exchange put out a study saying hedge funds weren't causing more volatility. That's nonsense. Traders are attracted by volatility. In the 1990s we had pretty flat markets. We didn't have a lot of trading volume. Now we're seeing bigger price moves, $2 a day. We never saw that before.
What kicked off this trend?
The trigger was availability of talent. Enron went down in 2001. Utilities started exiting energy trading. You had this meltdown of natural gas and power trading. Some of these folks started their own hedge funds, and some were hired by hedge funds. You had this pool of talent.
Where did price increases come in?
We had higher energy prices beginning in 2004. People wanted to come into energy because it was headline news.
Banks and insurers also are in the game.
Banks are really the biggest player in this market. They have the capital base, the global positioning, the traders. They have the relationships, they're in project financing.
So interest in the energy sector is moving away from owners and consumers?
This is a financialization of the energy markets, and it's immature. We size it at $3 trillion, compared to, say, $26 trillion in interest rate swaps. Energy is the world's largest business, at $4 trillion. It should trade at 6 to 20 times the physical market. The growth potential is enormous.
What's the downside?
Risk, risk, risk. Energy is a risky business. You've got headline risk, weather risk, geopolitical risk--it just goes on.
What about volatility?
We saw a big hedge fund go down--Amaranth Advisors. But that's only 1% of the market. There's no risk to the financial marketâ...but [hedge fund investing] is too risky for small investors. This is big money that should know the risks and afford to lose it. Energy trading is a zero-sum game. When Amaranth lost $6 billion, somebody made $6 billion on the other side.
London's Intercontinental Exchange (ICE ) came into this space about a year ago. What has that done?
ICE launched West Texas Intermediate crude futures last February. It was the biggest launch ever in trading contracts, [and] a lot of it was hedge-fund-driven.
Why so big?
They're totally anonymous. That's an attraction for traders. If you're trading on the commodities floor, people know your positions. You know the size, the direction, the scale, the length of the trade. You don't know any of that in cyberspace.
You predict that green trading is the next big thing.
The global carbon emissions market was about $25 billion for 2006, and it's doubling every year. Once the U.S. enters a carbon-trading regime, the uplift will be incredible.
Where is the money coming from?
It's coming from high-net-worth [individuals] and private equity. There's unprecedented interest in clean energy. ...When you put that together with the world's largest business--energy--it's going to be huge. It's absolutely a new asset class.
A Fast New Financial Game Called Energy
Energy consultant Peter C. Fusaro, chairman of New York-based Global Change Associates Inc. and co-founder of the Energy Hedge Fund Center, was among the first to notice the growing role of hedge funds and other financial players in the energy sector two years ago. He talked to Washington correspondent Lorraine Woellert about how the trend is contributing to price fluctuations and where it's going next.
Is the surge in oil futures trading exacerbating the market's ups and downs?
The Commodity Futures Trading Commission and New York Mercantile Exchange put out a study saying hedge funds weren't causing more volatility. That's nonsense. Traders are attracted by volatility. In the 1990s we had pretty flat markets. We didn't have a lot of trading volume. Now we're seeing bigger price moves, $2 a day. We never saw that before.
What kicked off this trend?
The trigger was availability of talent. Enron went down in 2001. Utilities started exiting energy trading. You had this meltdown of natural gas and power trading. Some of these folks started their own hedge funds, and some were hired by hedge funds. You had this pool of talent.
Where did price increases come in?
We had higher energy prices beginning in 2004. People wanted to come into energy because it was headline news.
Banks and insurers also are in the game.
Banks are really the biggest player in this market. They have the capital base, the global positioning, the traders. They have the relationships, they're in project financing.
So interest in the energy sector is moving away from owners and consumers?
This is a financialization of the energy markets, and it's immature. We size it at $3 trillion, compared to, say, $26 trillion in interest rate swaps. Energy is the world's largest business, at $4 trillion. It should trade at 6 to 20 times the physical market. The growth potential is enormous.
What's the downside?
Risk, risk, risk. Energy is a risky business. You've got headline risk, weather risk, geopolitical risk--it just goes on.
What about volatility?
We saw a big hedge fund go down--Amaranth Advisors. But that's only 1% of the market. There's no risk to the financial marketâ...but [hedge fund investing] is too risky for small investors. This is big money that should know the risks and afford to lose it. Energy trading is a zero-sum game. When Amaranth lost $6 billion, somebody made $6 billion on the other side.
London's Intercontinental Exchange (ICE ) came into this space about a year ago. What has that done?
ICE launched West Texas Intermediate crude futures last February. It was the biggest launch ever in trading contracts, [and] a lot of it was hedge-fund-driven.
Why so big?
They're totally anonymous. That's an attraction for traders. If you're trading on the commodities floor, people know your positions. You know the size, the direction, the scale, the length of the trade. You don't know any of that in cyberspace.
You predict that green trading is the next big thing.
The global carbon emissions market was about $25 billion for 2006, and it's doubling every year. Once the U.S. enters a carbon-trading regime, the uplift will be incredible.
Where is the money coming from?
It's coming from high-net-worth [individuals] and private equity. There's unprecedented interest in clean energy. ...When you put that together with the world's largest business--energy--it's going to be huge. It's absolutely a new asset class.
2007/01/08
For EHFC members we have added the first chapter of our book - Energy & Environmental Hedge Funds - The New Investment Paradigm from John Wiley and Sons, 2006, to the members only area of the website (Member Files).
EHFC site membership is FREE.
Join now and read the first chapter of the our book.
GM Vasey, EHFC
EHFC site membership is FREE.
Join now and read the first chapter of the our book.
GM Vasey, EHFC
2007/01/05
Analysis of the Energy Hedge Fund Center's directory of energy hedge funds shows that there at least 430 firms offering investors some 536+ hedge funds that have some energy content. Around 300 of these funds are energy-specific.
By style, the universe breaks up into the following groups;
Commodity 179
Equity 190
Hybrid 40
Alternative Energy 28
FoF 38
Infrastructure 16
Unclassified 40
Shipping 5
and geographically as follows;
USA 362
Canada 38
UK 69
Switzerland 23
Holland 6
Australia 6
France 5
Japan 1
Germany 1
Luxembourg 1
Austria 4
India 1
Hong Kong 1
Sweden 2
Norway 10
Russia 1
Singapore 1
New Zealand 1
Sth Korea 1
Finland 1
Spain 1
Recent trends are the increase in Alternative Energy or 'Green' hedge funds and increased interest in commodity trading funds in Europe.
We continue to add 5-10 new funds every month to the directory.
For more information on the directory or analysis of its contents, please contact either Peter Fusaro or myself.
Dr. GM Vasey, EHFC
By style, the universe breaks up into the following groups;
Commodity 179
Equity 190
Hybrid 40
Alternative Energy 28
FoF 38
Infrastructure 16
Unclassified 40
Shipping 5
and geographically as follows;
USA 362
Canada 38
UK 69
Switzerland 23
Holland 6
Australia 6
France 5
Japan 1
Germany 1
Luxembourg 1
Austria 4
India 1
Hong Kong 1
Sweden 2
Norway 10
Russia 1
Singapore 1
New Zealand 1
Sth Korea 1
Finland 1
Spain 1
Recent trends are the increase in Alternative Energy or 'Green' hedge funds and increased interest in commodity trading funds in Europe.
We continue to add 5-10 new funds every month to the directory.
For more information on the directory or analysis of its contents, please contact either Peter Fusaro or myself.
Dr. GM Vasey, EHFC
2006/12/14
There was an interesting article in the Wall Street Journal today about Kleiner Perkins Greentech conference and their commitment to investment in the sector. I have spoken about stealth investment by Silicon Valley venture capitalists but the size of the investment committment is still quite small. In fact, I am beginning to think that the global committment of capital to fund next wave energy technology may be only $20 billion. Kleiner, the larest VC in the valley, has only doubled its investment to $200 million.
This leads me to the belief that we are just getting started in the clean energy technology space. Let's look at some of the numbers. Energy is the world's larest business at over $4 trillion and rising. Research and development in the US for energy is only $4 billion compared to $30 billion for automobile research by the Big 3 and Toyota. So, where is all this wave of money going to come from?
The answer is venture capital, private equity and some hedge funds. The need is enormous and the market unprecedented. You have basically two markets: one is the OCED which needs to transform itself to cleaner energy and more efficiency and the developing world which can leapfrog into newer technologies.
The analogies to the dotcoms is ridiculous. The world's largest business is now undergoing transformation that will take two decades as higher fossil fuel prices, more rapid technology shift and rising environmental concerns drive the transformation faster than imagined and much more than the dotcoms ever could. Just think, if people unlesah their imagination on these rising problems, they will come up with better solutions.
In this holiday season with focus on family and friends, the ability of human beings to "do the right thing" can not be underestimated. I wish you and yours all the best for 2007.
Peter Fusaro, Chairman, Global Change Associates
This leads me to the belief that we are just getting started in the clean energy technology space. Let's look at some of the numbers. Energy is the world's larest business at over $4 trillion and rising. Research and development in the US for energy is only $4 billion compared to $30 billion for automobile research by the Big 3 and Toyota. So, where is all this wave of money going to come from?
The answer is venture capital, private equity and some hedge funds. The need is enormous and the market unprecedented. You have basically two markets: one is the OCED which needs to transform itself to cleaner energy and more efficiency and the developing world which can leapfrog into newer technologies.
The analogies to the dotcoms is ridiculous. The world's largest business is now undergoing transformation that will take two decades as higher fossil fuel prices, more rapid technology shift and rising environmental concerns drive the transformation faster than imagined and much more than the dotcoms ever could. Just think, if people unlesah their imagination on these rising problems, they will come up with better solutions.
In this holiday season with focus on family and friends, the ability of human beings to "do the right thing" can not be underestimated. I wish you and yours all the best for 2007.
Peter Fusaro, Chairman, Global Change Associates
2006/12/06
We are very pleased that SunGard Kiodex has again sponsored the Energy Hedge Fund Center through 2007. Sponsorships are the way that we keep this site FREE for you.
Please do click through and visit SunGard Kiodex's website.
Many thanks to SunGard Kiodex for its continued support.
About SunGard Kiodex
Kiodex is an operating unit of SunGard Trading and Risk Systems. Kiodex delivers a Web-services platform that transforms risk into a strategic advantage. Hedge funds, financial institutions and corporations use Kiodex services — the Kiodex Risk Workbench and Kiodex Global Market Data — to measure commodity price risk, to design optimal hedging strategies, to improve pricing execution, and to comply with best accounting practices. Kiodex Web services meet the needs of any company with exposure to energy prices or foreign exchange rates, from corporate hedgers with straightforward strategies to energy traders with complex requirements. Our customers include energy hedge funds as well as leading energy, manufacturing, transportation, and chemical companies.
With Kiodex, you can to turn your risk into advantage.
Please do click through and visit SunGard Kiodex's website.
Many thanks to SunGard Kiodex for its continued support.
About SunGard Kiodex
Kiodex is an operating unit of SunGard Trading and Risk Systems. Kiodex delivers a Web-services platform that transforms risk into a strategic advantage. Hedge funds, financial institutions and corporations use Kiodex services — the Kiodex Risk Workbench and Kiodex Global Market Data — to measure commodity price risk, to design optimal hedging strategies, to improve pricing execution, and to comply with best accounting practices. Kiodex Web services meet the needs of any company with exposure to energy prices or foreign exchange rates, from corporate hedgers with straightforward strategies to energy traders with complex requirements. Our customers include energy hedge funds as well as leading energy, manufacturing, transportation, and chemical companies.
With Kiodex, you can to turn your risk into advantage.
