Knight Vinke's founder says that his fund cannot invest in the uncertain US under Trump
Eric Knight stated that his hedge fund could not invest in the United States with President Donald Trump as the risks were too high. However, profits can be made in Europe because there are clearer rules and policies regarding green energy projects.
Knight Vinke Asset Management, based in Monaco, sold "the last" of its U.S. investments 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 everything from Big Oil and banks to the energy sector, has focused its efforts on this sector in recent times, launching an energy transition fund in 2013.
He said that the risks associated with investing in alternative energy firms in the U.S. are 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," he added.
Trump's administration halted the construction of five major offshore projects in late 2016, causing shares to plummet. Last month, Trump called wind farms "losers". The shares of Danish wind company Orsted fell to a new record low after the U.S. Government halted construction on its nearly completed Revolution wind 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 the courts, federal judges have allowed all five projects to continue.
Taylor Rogers, a spokesperson for the White House, said that former president Joe Biden gave green energy industries unfair and preferential treatment.
She said that President Trump reversed the course of Joe Biden's ideological crusade, which was aimed at oil and gas companies. He has unleashed American?energy in order to lower costs and protect national security for American families and business.
Plans to scale up SSE Wind Capacity
Knight is instead focusing on Britain's SSE which has an offshore wind business and a large power transmission unit. He predicts that its valuation will double in the next five to 10 years. Knight's fund has enough shares in SSE to pressure the company into expanding its investments. It is under the 3% threshold that requires public disclosure.
He suggested that SSE consolidate the Berwick?Bank wind project, which is one of the largest in the world, with local assets, to create a more connected, larger project, capable of producing more energy for a lower price.
He said that SSE should keep 100% of the project and not sell off small stakes as it has done in the past with its other offshore wind assets.
He suggested that assets which are about to lose revenue streams guaranteed by government contracts or power purchase agreement nearing the end of their term, such as a portfolio onshore wind assets, be sold.
Knight stated that he would meet SSE in early 2026, after the conclusion of several SSE internal working groups.
SSE, according to a spokesperson, does not comment on individual shareholder opinions.
Knight stated that his fund will continue to "lobby" the British government, unions and political parties about his vision of creating much larger wind farms. 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. This is especially true since Knight's "observations" last February to the board and the "transformational plan" to invest heavily in the grid network.
Knight stated that SSE shares have risen by more than 60% since February 2025. The company's current value is around 38.28 billion pounds (28.28 billion pounds). However, Knight added, the share price could go much higher if SSE backed Knight's strategy.
He said that within 5-10 years, it could be worth $60 billion (pounds). This would put it on par with BP's stock market value, which is just below 70 billion pounds.
(source: Reuters)
