NEW ENERGY FUND LP NEW ENERGY FUND LP January 31, 2007 A - - PowerPoint PPT Presentation

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NEW ENERGY FUND, LP

January 31, 2007 A Sustainable Energy Technology Equity Hedge Fund

New Energy Fund LP, 527 Madison Avenue, 6th Floor, New York, NY 10022. 212 419 3918 www.newenergyfundlp.com

NEW ENERGY FUND LP NEW ENERGY FUND LP

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NEW ENERGY FUND, LP

NEW ENERGY FUND LP

A Sustainable Energy Technology Equity Hedge Fund MISSION To provide exposure to the existing growth of the renewable energy sector METHOD The top-down thesis is the selection of the renewable energy sector with its growing (1 IPO per week) target universe of approximately 400 public stocks. Bottom up stock selection using top and bottom line growth, provides diversification into sub-sectors and currencies. Use of short positions can reduce volatility and preserve capital STRUCTURE Sustainable Energy Associates LLC is the managing partner. New Energy Fund LP, the fund partnership, aims to increase assets by organic and external growth to the level of $200 million in the first phase, as quickly as possible, initially via high net worth and then institutional investors. FEES NEF LP has a 1.5% management fee and 20% incentive fee with high water-mark

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NEW ENERGY FUND, LP

MARK TOWNSEND COX

• 21 years experience in international equity markets
• Founder (in 2003) and Chief Investment Officer of New Energy Fund, LP
• 8 years as portfolio manager, 5 with Pinnacle International Management, LLC
• Hedge Fund experience while at Pinnacle
• 14 years European equity sales, analyst, and head of sales desk
• EMBA, Columbia University, Executive MBA class
• Series 7, 24, 65, 63 NASD licenses
• Royal Military Academy Sandhurst
• British Army paratrooper lieutenant. Falklands campaign. Awarded MID.
• MA, Dundee University, Scotland. French & English Literature. Fluent spoken French

The fund intends to have 3 or 4 personnel including another analyst, portfolio manager and administrator when it grows to the right size

TEAM

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NEW ENERGY FUND, LP

TEAM

ABIGAIL LAUFER, Chief Operating Officer

• Held a variety of important positions since entering the business in 1981.
• In 1983, appointed Director of Mutual Fund Research for Merrill Lynch as the firm

had just begun to venture into this area of research.

• First consultant to work directly with George Russell in the formation of the high net

worth effort at Frank Russell Company in 1987.

• In 1990, formed her own firm, Laufer Consulting to represent managers and

provide marketing consulting services on a contractual basis.

• Among her manager clients were Equinox Capital Management (now a $14 billion

money manager) and New Amsterdam Partners (a $5 billion woman-owned minority firm).

• Was also a partner of the Maud Group (1994) and constructed a domestic hedged

fund-of-funds product to be sold to the high net worth marketplace.

• In 1997 she and Joan Marsted founded Hanover Square Associates, a third party

marketing firm which raised $1 Billion for long and hedged managers.

• Ms. Laufer has A.B.. from Princeton University (1978) and an M.B.A. from the

University of Michigan (1981). She is a member of the Financial Women’s Association and the National Association of Women Business Owners.

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NEW ENERGY FUND, LP

• Long bias caused FOLLOWING Macro thesis
• Diversification:

15 – 30 positions out of universe of 450 in the portfolio 16 markets: ‘organic’ currency exposure 20 sub-sectors, each with its own cycle

• Market risk and beta reduced by short portfolio
• Managed volatility, target less than 20%
• Average gross exposures 100% - 150%
• Average net exposure 70% - 100%
• Illiquid investments need very strong story and are not trading stocks
• Normal position size is 4%
• Maximum position size 15%. Shaving after that.
• Disciplined stop positions

RISK CONTROL - EXPOSURE

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NEW ENERGY FUND, LP

SUPERVISORY BOARD

• Anastasios Melis - Professor of Enzymology at the University of California -
• Berkeley. Research in hydrogen production mechanisms by microalgae and
• bacteria. Recipient of the 2004 US Department of Energy Hydrogen Program R & D

Award.

• Peter Fusaro - Chairman and founder of Global Change Associates, Inc. an energy

and environmental consulting firm. He has advised the US EPA, DOE, the State Department, the Govt. of Japan and the World Bank on energy and environment

• Russel K. Mason - President and founder of the Investment Management Institute

(IMI). Member of the Boston Society of Security Analysts and the Financial Analysts Federation

• Curt Weil - Finance professor at Santa Cruz university. 38 years a financial

services provider and leader the financial community. CFP and a Registered Investment Advisor

• Bjorn Heyerdahl - Grandson of Thor Heyerdahl, of Kon-Tiki fame. Awarded Green

Cross by Mikhail Gorbachev for sustainability work

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NEW ENERGY FUND, LP

SUSTAINABLE ENERGY ASSOCIATES LLC TWO PORTFOLIO’S – RNK and NEF

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NEW ENERGY FUND, LP

FOSSIL EXTERNALITIES

FOSSI L FUELS NUCLEAR

CLIMATE HEALTH POLLUTION GEOPOLITICS SUBSIDIES RELIABILITY …UGLINESS?

• Mr. Ted Kennedy

RENEWABLE ENERGY

DEPLETION

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NEW ENERGY FUND, LP

Vote catching stuff!

• ENERGY SECURITY – more important than environment now
• REGULATORY – Carbon, German EEG law, Kyoto, RPS
• TECHNOLOGY – 20 or more clean electricity generation methods

(Solar, Hydro, Tidal, Wave, Geothermal, Heat Pump, Ocean Thermal, Osmosis, Wind, Hydrogen FC)

• ECONOMICAL – on absolute basis, let alone externalities
• ENVIRONMENT – Ecology rules – who cares about trees
• DELAYS – Implementation of new nuclear… or oil, 10 years
• EDUCATIONAL –Who knew?

RENEWABLE ENERGY DRIVERS

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NEW ENERGY FUND, LP

ENERGY DEMAND CURVE

Exajoules

OIL WILL NEVER RUN OUT. VOLUMES ARE PEAKING. LOW HANGING FRUIT MODEL SHELL AGREES ABOUT PEAK OIL BUT WHEN WILL IT BE…….?

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NEW ENERGY FUND, LP

MEDIA EXPLOSION

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NEW ENERGY FUND, LP

GROWTH TO 2010…and beyond

Source: Piper Jaffray and Photonics

WIND SOLAR BIODIESEL ETHANOL

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NEW ENERGY FUND, LP

UNIVERSE OF 450 GLOBAL RENEWABLE ENERGY EQUITIES

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NEW ENERGY FUND, LP

UNIVERSE OF 427 GLOBAL RENEWABLE ENERGY EQUITIES

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NEW ENERGY FUND, LP

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NEW ENERGY FUND, LP

PUBLIC QUOTED COMPANIES

UNIVERSE 378 Market Capitalization Market Volumes TOP 50 US $222 Billion US $ 171 Billion US $ 1.6 Billion US $1.2 Billion

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NEW ENERGY FUND, LP

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NEW ENERGY FUND, LP

CURRENCY AND SECTOR EXPOSURE December 31, 2006

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NEW ENERGY FUND, LP New Energy Fund LP, 527 Madison Avenue, 6th Floor, New York, NY 10022. 212 419 3918 www.newenergyfundlp.com

The dollar has weakened significantly against both the British pound and the Euro since the start of 2006

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NEW ENERGY FUND, LP

NET PERFORMANCE

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NEW ENERGY FUND, LP

PRESS

by Jim Heskett (extract from article) Is the end of cheap oil a challenge to the world?

• Yes. Will it affect our standard of living

adversely? Not likely. At least that is the verdict

• f most of the large number of respondents to

this month’s column who rely on assumed human ingenuity combined with market forces and government incentives to bolster their

• arguments. This view was characterized by Mark

Townsend Cox, who commented, “I can count almost twenty methods of creating electricity without burning something, every one of which is essentially an infinite resource that does not pollute or deprive future generations of oil.” [ ] Mark Cox adds, “I think that the best method to remediate our world is education about the

• possibilities. I have rarely found anyone who is

not ... fascinated by the possibilities ....”[ ]

http: / / hbswk.hbs.edu/ item.jhtml?id= 4398&t= heskett&oid= 4359&rid= 436 8&hid= 4398&aid= -1

Summing Up: How Do We Prepare For a World Without Cheap Oil?

Each m onth, professor Jim Heskett offers his thoughts on specific events and activities in the w orld of business and their im pact on the w ay m anagers m anage. "W hat Do YOU Think?" invites readers to respond, and selections from these responses are m ade available online. September 27, 2004

Mention in Dr. Michael Berry’s Morning Notes, 2 3 Septem ber, 2 0 0 4 . “I also had the pleasure of spending an hour with Mr. Mark Townsend Cox who is CIO for a hedge fund that only buys sustainable energy

• companies. This was the second part of my

epiphany yesterday. Mark is impressive and he believes in the sustainable energy revolution, which must be in our future and

• ur children’s future. Mark has selected 184

companies worldwide that sell sustainable energy, wind solar biomass, etc. Mark is thorough and clearly believes in his

• product. I encourage you to contact him and

checkout his New Energy Fund. It may be the future. Mark was mentioned in dispatches in the Falkland’s campaign, collects hydrogen from apparatus on his apartment’s windows and has worked in Nigeria to teach and develop energy sources for the poor – to mention just a few of his accomplishments. I look forward to monitoring his success in this endeavor.

Michael A. Berry, Ph.D.

September 23, 2004 New Energy Fund LP, 527 Madison Avenue, 6th Floor, New York, NY 10022. www.newenergyfundlp.com