Alternative Investments: The focus needs to be Global

Hedge Funds New York: This month T Boone Pickens took the case for investing in alternative energy to the American public with a flood of advertising on the major US television networks, and a website: www.pickensplan.com. The Pickens Plan is interesting, and lays out ideas for wind generation, solar power, and for vehicles – natural gas. While Mr. Pickens’ previous track record for success is remarkable, and his plan is swaying the minds of millions across the country the case can be made that its reasons for implementation (US independence of foreign oil) as well as its mainly domestic focus (the wind generation capabilities of the Great Plain states) are too narrow. Opalesque had the opportunity to speak with David Love, CFA, of CP Eaton Partners about how the firm, which has placed over $28 bln into more than 50 funds is researching and evaluating future opportunities within the alternative energy sector.

The focus needs to be global
While there are parts of the Pickens Plan that ring true with the research that CP Eaton has done, Love believes that the investment opportunities are much vaster than just the US focus which the plan takes. Not only is alternative energy being invested in on the corporate level (ie, General Electric), but on the country level as well (ie, Abu Dhabi), both of which announced a planned partnership this week where each will put $4bln into a joint business based in the UAE. Additionally, GE will provide expertise in environmental technologies to the construction of a new city, Masdar, which is intended to be a carbon neutral, zero-waste metropolis in the desert of Abu Dhabi.

The failures of past US administrations to take steps to foster the development of alternative energy sources have finally hit the nation in full force. Prescient entrepreneurs in the US have already staked claim to some of the opportunity in the alternative energy sector. However a larger boost to the industry should happen in the months following January 20, 2009, as whichever candidate finds himself in the office of the President, the economical implications have made it clear the government will need to recognize and work to foster the growth of this next industrial revolution.

Source:
Pickens Plan shortfalls and the gains to be made for hedge funds investing

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