Ecofin has launched the Ecofin China Power & Infrastructure Fund--the fund designed to generate compelling risk-adjusted returns in greater China, building on the firm's global expertise in infrastructure and utilities investing. The fund seeks to generate absolute returns with lower volatility than the Chinese market through dynamic portfolio construction based on macro and fundamental research.
The Chinese government is in the midst of a massive upgrade of the country’s infrastructure – transportation network, renewable energy, as well as utility generation and distribution. The build-out of China's infrastructure and the transformation of energy consumption structure will continue to be among the most important global investment themes in the next decades to come, as China continues to emerge as a world power and is set to become the world's largest economy within a decade. In the short term the $586 billion stimulus spending with the majority going into the infrastructure and energy space accelerates the long term growth and at the same time provides catalysts and dispersions among the sub sectors.
"In this environment the Fund will seek profit from a number of specific opportunities in the infrastructure and power universe. The secular growth opportunity, visibility of cash flows, and the asset-backed nature of the companies favour the risk profile of the sector, while the dispersion of returns will provide fertile ground for long and short tactical allocation,” said Bernard Lambilliotte, CIO of Ecofin.
The long biased long-short Fund will range between 20 percent and 100 percent net long, with a max of 150 percent gross and no financial leverage. The fund will invest mainly in large cap stocks, and will have monthly liquidity with 30 days redemption notice.
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