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Rob Romero From Komfie Manalo, Opalesque Asia:
Movements in energy prices, specifically oil and gas, are major macro trends that affect all industries. However, a good investor must be tactical in approaching investments in the energy sector, particularly in alternative energy long and short opportunities which "are based on technology, commercial maturity, profitability and growth, or investor risk appetite and time horizon," said Rob Romero from Connective Capital, a Silicon Valley- based long/short equity hedge fund management $70m in assets under management (AuM).
Romero explained during the latest Opalesque West Coast Roundtable that the markets always experience a major movement in stocks of companies making grid power generation every time there is a spike in oil prices. Amongst the companies that profits from such scenarios are manufacturers of wind, solar, geothermal equipment.
But this can also present an opportunity for alternative energy investors as the spike in oil prices will also raise demand for alternative sources of energy.
"However, except in a few situations, crude oil is not the fossil fuel used for electricity generation. Usually it’s coal or natural gas. So there is really is not much of a connection between the profit stream and oil prices, yet some alternative energy stocks see a ...................... To view our full article Click here
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