Asia hedge funds that rode a green investing wave for double-digit returns last year are starting to reduce bets on the sector given the lofty valuations.

Apeiron Capital has cut Tesla Inc. to a small position after the electric vehicle maker’s eight-fold surge sparked a 98% return for the US$400 million hedge fund in 2020, said founder Yao Wanyi. York Capital Management also trimmed investments in electric vehicle, battery and solar glass makers, according to Mark He, co-portfolio manager of its US$3.4 billion Asia funds.

“Clean energy remains one of the most important investment themes for years to come, it’s just that it ran a bit too much last year,” said He, adding the firm may buy the dips later.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook