Why This Hedge Fund is Betting on Climate Change


Climate change has become a significant investment. 

According to Robert Gibbins, who manages $5.5 billion in AUM at Autonomy Capital, climate change or global warming is here and now. It’s not something that just future generations will face.

Investors should, therefore, structure portfolios that will consider a world that is swiftly overheating and going underwater.

Carbon – waste or money?

Gibbins should know what he is talking about. He has earned a lot of money on European carbon-futures contracts. Carbon will be an expensive by-product due to global warming.

Gibbins expects good pickings in the sector.

His fund has generated an annualized 12.85% net of fees since its inception in November 2003, versus 8.9% for the S&P 500 index, based on a strategy tracking major economic and political trends.

Recent calls include shorts on the debt and currencies of Turkey and South Africa, and a long view on Argentina.

Weak economies, in Gibbins’ view, will be further stressed by climate change.

On Trump and Climate Change

Gibbins believes that despite Trump’s rejection of the Paris Climate Agreement, the U.S. will eventually partner with Europe. This partnership would structure a global deal to rein in carbon emissions and punish countries that fall foul of the accord.

Big Oil and oil-based economies like Nigeria will face serious challenges.

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