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Opalesque Exclusive: Who are the Green Hedge Funds Matthias Knab reports live from New York: Dr. Gary Vasey, co-founder, Energy Hedge Fund Center, said their directory now includes 470 hedge funds, with the majority of these are “non-commodity funds. However within the last six to nine months more “green” hedge funds that trade energy, emissions have been formed. Here some examples:

Jerry Levey, RNK Capital

RNK is a US based company that was started 2 years ago to trade domestic and international carbon and renewal energy. RNK found that the core challenge is credit (RECs, renewable energy credits, see yesterday’s article in Opalesque on RECs in archive). Levey said you need to look at “who is delivering to you”; delivery is mostly done on a DVP base (delivery versus payment).

RNK expanded into financing developments and projects. RNK contributes external funds into the project that would not be there from the standard banking procedures.

Levey said the market will further mature and financial institutions will become more comfortable with these assets, like looking back they have increasingly embraced crude oil or natural gas.

Difficulties in Clean Energy Investing in Public Markets Mark Cox, whose New York based New Energy Fund has been trading for 15 months, pointed out some of the issues in clean energy investing:

• small / micro cap companies make it hard for large funds to take a meaningful position
• limit......................

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