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Alternative Market Briefing

Alternative energy investing: Pickens Plan shortfalls and the gains to be made for hedge funds investing in the value chain

Monday, July 28, 2008

Kirsten Bischoff, Opalesque 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......................

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