Sparx Group, one of Asia’s largest hedge funds, plans to launch a fund in July to invest in renewable-energy projects in Japan as the country reshapes its energy policy.
With around $10 million to $100 million to invest, the fund will focus initially on wind and solar but may eventually add geothermal projects, Sparx’s founder and chief executive officer Shuhei Abe said in an interview with Dow Jones Newswires Monday.
“Even if it’s small, we are trying to do it by July,” Mr. Abe said. “If we cannot find investors, we’ll do it ourselves.”
July is when Japan will implement a law aimed at reducing dependence on nuclear power by bolstering investment in renewable energy sources, an area in which the country has long lagged. It was pushing instead toward a goal of getting half its electricity from nuclear power by 2030—but then came the March 11 earthquake and tsunami, setting off the disaster at the Fukushima Daiichi nuclear plant.
Tokyo-based Sparx, which manages $6.5 billion in assets, sees growth in investment opportunities for alternative energy, said Mr. Abe, with the government expected to relax complex regulations in the area as part of its review of energy policy.
Separately, Mr. Abe said he expects the dollar to rise to ¥90 this year if US economic fundamentals improve faster than forecast—and he’s among those who feel that they will be. He’s bullish over the US economy due to a “radical” shift in its energy policy.
“A huge transition in (US energy policy) is taking place,” Mr. Abe said. “In 10 years’ time, the US and China may be the biggest energy source for the world.”
The US is expected to become an exporter of natural gas as production from shale grows. The discovery of new gas reserves has also led to low domestic prices, bolstering the competitiveness of US manufacturing.
