Climate Change Investment Opportunities Unearthed

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Volatility in equity markets has created winners and losers in the broader climate change investment sector. So says Farley Thomas, Global Head of Wholesale at HSBC Investments. Thomas cites the "solar" sector as a current example of an attractive theme. Although share prices within this sub-sector became overheated last year, general risk aversion has since led these stocks to be severely punished, falling 50% since their highs in November 2007.

Volatility in equity markets has created winners and losers in the broader climate change investment sector. So says Farley Thomas, Global Head of Wholesale at HSBC Investments. This shake-out has presented attractive buy opportunities in some sub-sectors, and the portfolio composition of the HSBC GIF Climate Change Fund is constantly being rebalanced in order to capitalise.

Thomas cites the "solar" sector as a current example of an attractive theme. Although share prices within this sub-sector became overheated last year, general risk aversion has since led these stocks to be severely punished, falling 50% since their highs in November 2007. Many of these stocks still display favourable earnings forecasts, and following the correction are now attractively valued, Thomas says.

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