From GreenTechMedia.com: In spite of biofuels' troubles, a Connective Capital partner says there's still money to be made in the sector. And fund executives say greentech isn't headed for a crash.
Despite all the difficulties facing the ethanol industry -- such as shrinking margins, canceled plants, environmental concerns and even a study suggesting an ethanol fire is harder to extinguish than a gasoline fire -- Rob Romero, a managing partner at Connective Capital, still thinks biofuel investments are worth pursuing.
At a hedge-fund investment panel Wednesday at the Cleantech Forum in San Francisco, he listed biofuel as one of his interest areas as a fund manager. It’s not that Romero is blind to the ethanol industry’s hardships. He just thinks investors have to know where to look. And he’s looking to invest, not in ethanol manufacturers, but in the industry’s supporting businesses.
"All the people who are making money aren’t the ethanol refiners," Romero said, adding that the moneymakers are farmers, seed suppliers and fertilizer manufacturers. "[Those are] the type of markets we are chasing as a hedge fund," he said. "It’s not investing across the value chain, but frankly making long and short investments to keep the volatility down for our investors."
Speaking to a crowd with an entrepreneurial bent, Romero also dispensed hints for venture capitalists and startups. He sees a big opportunity for energy-storage technologies that can expand the use of solar and wind power, as well as for companies that can lower the cost of solar energy to that of conventional electricity -- about $1 per watt, he said…. Full article: Source
Opalesque note: Connective Capital Management, LLC is a Silicon Valley based investment adviser seeking superior returns by investing primarily in technology equities. It launched its third hedge fund in April 2006. Corporate website: Source
No comments:
Post a Comment