Knight Vinke's founder says that his fund cannot invest in the uncertain US under Trump
Eric Knight, a hedge fund manager, said that his fund could not invest in the United States with President Donald Trump as the risks were too high. However profits can be made by investing in Europe where the rules and policies regarding green energy projects is more predictable.
Knight Vinke Asset Management, based in Monaco, sold its 'last' U.S. assets in August. This was revealed in an interview with its CEO and founder Knight.
A letter sent to investors by the fund showed that it would return 17.9% by 2025. Knight founded the fund in 2003, and he made his name by urging Shell to merge into one company in 2005.
Knight, after investing in a variety of sectors, from Big Oil to the banks, has recently focused on energy. Last year, Knight launched a fund dedicated to energy transition.
He said that the risks associated with investing in alternative energy firms in the U.S. have become too high.
Knight said that the headwinds were too strong. "It has become uninvestable due to the fact that rule of law was not applied consistently."
Trump's administration stopped construction on five major offshore wind projects in late 2016, causing the share price to plummet. Last month, Trump called wind farms "losers".
The shares of the Danish wind company Orsted fell to a new record low after the U.S. government halted construction on its almost-completed Revolution project near Rhode Island.
The Norwegian oil company Equinor has taken a loss of nearly $1 billion on its green energy business after the project Empire Wind 1 was stopped.
As they battle the administration in court, federal judges have allowed the work to continue on five projects.
The White House didn't immediately respond to a comment request.
PLANS TO SCALE UP the SSE Wind Capacity
Knight is instead focusing on Britain's SSE. It has a large transmission and power business, as well as an off-shore wind unit. He predicts that its valuation could more than double in the next five to 10 years.
Knight's Fund, which has a stake in SSE that is below the 3% threshold for public disclosure, now holds enough shares to pressure the company to increase its investments. It supports a new capital expenditure plan of 33 billion pounds ($45.16billion) but calls for the UK offshore wind industry to receive more funding.
He suggested that SSE consolidate the Berwick Bank Project, off the coasts of Scotland, which is one of the largest in the world, with local assets, to create a "larger, more connected wind power project" capable of producing more energy for a lower price.
He said that SSE should keep 100% of the project, rather than sell small stakes as it has done in the past with other offshore assets.
He also suggested that he sell?assets which are about to lose revenue streams guaranteed as government-backed contract or power purchase agreement nears an end. This includes a portfolio onshore wind assets.
Knight stated that he would meet SSE in early 2026, after several SSE internal working groups had concluded. He wrote to the board?in February 2025 to outline the need for greater ambition and focus.
SSE, according to a spokesperson, does not comment on individual shareholder opinions.
Knight stated that his fund will continue to lobby on behalf of his vision for much larger wind projects with the British Government, trade unions, and other political parties. He said they planned to hold a forum of stakeholders before Easter.
Knight, who purchased SSE stock several years ago, stated that the stock has done well since his "observations" last February to the board and the "transformational plan" resulting from the spending big on the grid.
Knight stated that SSE shares have risen by more than 60% since February 2025. The company's current value is around 28 billion pounds (38.28 billion dollars), but Knight added that it could be much higher if his strategy was supported.
He said that within 5-10 years, it could be worth $60 billion, which would put it on par with BP's stock market value, just below 70 billion pounds. $1 = 0.7307 pound (Anousha Sakoui contributed additional reporting; Dawn Kopecki, Alexander Smith and Dawn Kopecki edited the article).
(source: Reuters)
