LONDON--(BUSINESS WIRE)--Using AlternativeSoft’s asset selection software, we were able to find the top 3 performing hedge funds to see how they performed vs the top 5 hydrogen stocks vs the top 3 ETF clean energy, during 2020.
|
Cumulative return during Jan2020-Dec2020 |
Top hydrogen stock |
1,560% |
Top ETF clean energy |
222% |
Top hedge fund |
729% |
Combating climate change is part of President Biden's core agenda. On his first day, he addressed this issue by rejoining the Paris Climate Agreement, ending the Keystone XL pipeline and revoking oil and gas development at national wildlife monuments1. As climate change has such a priority in Biden’s agendas, it has brought attention to the hydrogen economy.
The hydrogen economy is the process of producing hydrogen to use it as fuel, hence replacing fossil fuels and cutting carbon emission significantly2. Companies that operate under the hydrogen economy are the companies that sell fuel cells, renewable energy equipment, and supply hydrogen gas. The stocks of these companies have been soaring, driven not only by President Biden's support for clean energy, but also by 60 countries agreeing to reduce their net carbon emissions by 2050 to zero3, as well as by the rising adaptation of zero-emission.
The top 5 Hydrogen stocks, Ballard Power Systems (BLDP), Cummins (CMI), Plug Power (PLUG), Bloom Energy (BE) and FuelCell Energy (FCEL), had very impressive cumulative returns in 2020. PLUG had the highest return at 1560%. FCEL comes as a second with a return of 1247%, followed by BE’s return of 385%, BLDP 269% and, CMI 50%. What has also boosted this increase, is the falling costs and rising capital coming in the industry not just in the United States but globally. In the beginning of January this year, Plug Power got a $1.5 billion investment from SK Holdings4.
We conclude that selecting the correct hedge funds or the correct stocks, with skills, could have generated large returns during 2020.
N.B. This article is not intended to provide any professional investment advice and should be treated as more of an opinion piece.
To trial a truly powerful and comprehensive analytic software for investment decisions, fund allocation, and our new, innovative digital due diligence visit https://www.alternativesoft.com/
1 Erickson, B. (2021, January 21). Biden signs executive actions on COVID, climate change, immigration and more. Retrieved from https://www.cbsnews.com/news/biden-signs-executive-orders-day-one/
2 Bloom, SunPower, Cummins: Hydrogen Economy Stocks To Watch As Biden Administration Takes Over. (2021, January 21). Retrieved from https://www.forbes.com/sites/greatspeculations/2021/01/21/bloom-sunpower-cummins-hydrogen-economy-stocks-to-watch-as-biden-administration-takes-over/?sh=7c28d846b55e
3 Sengupta, S., & Popovich, N. (2019, September 25). More Than 60 Countries Say They'll Zero Out Carbon Emissions. The Catch? They're Not the Big Emitters. Retrieved January 22, 2021, from https://www.nytimes.com/interactive/2019/09/25/climate/un-net-zero-emissions.html
4 Plug Power and South Korean SK Group to Form a Strategic Partnership to Accelerate Hydrogen Economy Expansion in Asian Markets; Plug Power to Receive $1.5 Billion Strategic Investment From SK Group. (2021, January 6). Retrieved January 22, 2021, from https://www.ir.plugpower.com/Press-Releases/Press-Release-Details/2021/Plug-Power-and-South-Korean-SK-Group-to-Form-a-Strategic-Partnership-to-Accelerate-Hydrogen-Economy-Expansion-in-Asian-Markets-Plug-Power-to-Receive-1.5-Billion-Strategic-Investment-From-SK-Group/default.aspx
