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US politics ‘could dissuade hedge funds from investing in solar energy’

Political changes in the US have highlighted the importance of solar energy positioning for hedge funds specialising in environmentally-friendly investments.

Political changes in the US have highlighted the importance of solar energy positioning for hedge funds specialising in environmentally-friendly investments.

F&C reports that Scott Brown’s victory in the Massachusetts Senate race earlier this year could lead the Obama administration to put back passing the legislation necessary to impose a cap and trade scheme.

Terry Coles, manager of the F&C Global Climate Opportunities Fund, has also highlighted the German reduction in solar-power project subsidies as an area of concern for hedge funds looking at energy investment.

He states: “Excess manufacturing capacity is currently a key theme within the solar cell industry and this … is set to increase pressures on pricing even further, which will hurt the profit margins of many high cost European solar manufacturers.”

Earlier this month, Share Centre investment adviser Graham Spooner claimed that the announcement of a 45 per cent fall in profits by BP should not affect investors, as energy stock still has long-term strengths.

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