WHY TERRAVERDE: WHY INFRASTRUCTURE & GREEN INVESTMENTS?
With the growing energy imbalance and growing investment in infrastructure including renewable energy, clean tech, and water, TerraVerde Capital is leveraging its industry relationships with managers who have fundamental insight and information networks in green investments including alternative energy and technology related markets, power, transmission, and transportation to identify sectors with growing problems.
INVESTMENT PHILOSOPHY:
TerraVerde strives to meet its targeted risk/reward portfolio objectives by offering investment solutions that access multiple investment managers and asset classes globally, and by achieving a targeted portfolio return while protecting partner capital in periods of market stress. By combining various managers with strategies that capitalize on market inefficiencies that are not necessarily dependent on a market’s direction, our diversified portfolio seeks to generate attractive returns versus peer traditional long only investing.
WHY A HEDGE FUND APPROACH FOR INFRASTRUCTURE & GREEN INVESTMENTS :
In this era of increasing visibility and focus on power and renewable energy with intense technology competition and high barriers to entry, there will be companies that will be winners along with some that may be losers. By allocating to a wide range of strategies across the clean energy supply chain of renewable energy, and by capitalizing on high-growth developing opportunities, each of these strategies has a major impact on our carbon reduction theme. With the pressure on global infrastructure and natural resources due to growing populations, energy efficiency and energy security are long term investments that offer unique investment opportunities.
MANAGER RESEARCH AND SELECTION PROCESS:
Our research process originates with a thematic or sector idea related to the reduction of global carbon emissions. Next we source superior hedge fund managers who can implement our ideas by investing in renewable energy companies. Ultimately, the goal of our research process is to construct a portfolio with volatility lower than traditional long-only investing that achieves consistent positive returns over an economic cycle. Once a manager is selected, we provide ongoing oversight to ensure adherence to our standards and thematic ideas.
An integral component of our research process is to identify and evaluate the multiple and related risks of each strategy. TerraVerde’s qualitative analysis of each hedge fund entails a deep “drilldown” evaluation of:
- Risk Management
- Investment Philosophy
- Investment Strategy
- Investment Process
- Key Personnel
- Organizational Factors