Ionic, Miura Biggest Solar-Focused Hedge Funds

May 12, 2009 FinAlternatives

The hedge fund with the highest exposure to the solar sector is Ionic Capital Management, which holds over 21% of its $207 million of assets in U.S. solar companies, according to HedgeTracker.com, which last week released its list of Top Solar-Focused Hedge Funds.

Ionic’s positions were widely spread across six solar companies: Suntech Power Holdings ($18.3 million); LDK Solar Co. ($10.7 million); Energy Conversion Devices ($5.4 million); Trina Solar ($3.2 million); Solarfun Power Holdings ($3.2 million); and JA Solar Holdings ($2.4 million).

Notably, the hedge fund manager, which has a deep value investment style, had no exposure to First Solar, which was overwhelmingly the favorite among the other four managers on the list.

In fact, Tracer Capital Management, which held 10% of its assets in the solar sector, held all of its solar assets ($19million) in First Solar.

The largest investor on the list is Miura Global Management, a long/short equity manager, which held $86 million or 11.8% of its $726 million in assets in the solar sector. Miura’s positions include FLSR ($55.1 million), LDK ($30 million), and TSL ($0.7 million). Notably, over the 4th quarter of 2008, the firm closed out of four other investments it had in the solar sector, including Yingli Green Energy ($19 million), Solarfun Power ($3.3 million), JA Solar Holdings ($2.8 million), and SunPower Corp. ($2.7 million)

The other two solar-focused hedge funds named are technology-focused Crosslink Capital, which has 9.4% of its $332 million dedicated to the sector, and growth-focused Hellman, Jordan Management with 7.9% of its $216 million allocated to solar companies. For individual investors that don’t have millions to invest, Hellman, Jordan also offers a mutual fund, the Jordan Opportunity Fund.

While the hedge funds are the biggest solar-focused ones, according to the HedgeTracker.com, it is not known how well they are performing in these volatile markets.