How to gain exposure to the era-defining renewable energy growth opportunity


Growth rates of 50% in some of these areas are achievable, while in others, such as hydrogen fuel cells, they could be greater because they are even earlier. But, of course, not all players will be winners and this is where Dynamic believes it has an advantage, with portfolio managers who have proven their ability to select companies that have good management teams, sustainable finances and balance sheets that generate free cash flow. to flow. Most importantly, these companies must be able to demonstrate their strength through at least two iterations of growth without hurting themselves.

Latshaw said, “We’re definitely not interested in the more speculative areas of this theme or new entrants who haven’t proven their business acumen or their technology and service offerings. We’re pre-programmed to find companies that are already best in class.

“It’s going to be a bit of a gold rush at first, and there are going to be a lot of people interested in capitalizing on the great opportunities that we see, and not all of them will survive. But through our natural investment selection process, focus on quality and our experience in the industry throughout our career, I believe we will be able to define which companies will be the winners. in 10 years. “

The products are focused on pure renewables, so hybrid models typical of large energy companies are not included. For example, rather than owning a bottling business that uses cleaner operating processes, it will own the business that supplies its facilities with clean energy.

Stevenson explained, “In the long run, there is a lot of differentiation in focusing on this strategy, as every great and good corporate citizen in the world seeks to become more environmentally friendly. Own automakers today ahead of the rest on this front [like Tesla] may enable you to claim an eco-friendly offering, but in five years, they all will. The key message that we like to convey to people is our quality approach and our focus on a niche. “

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