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In this New York Times article, Portfolio Manager Shawn Reynolds discusses why renewable energy has become one of his biggest bets.
The top three holdings of the VanEck Global Hard Assets Fund ("the Fund") currently are solar power companies. As of 9/30/20, Sunrun Inc. is 9.5% of net assets, SolarEdge Technologies, Inc. is 7.5% and Hannon Armstrong Sustainable Infrastructure Capital, Inc. is 4.3%. Sunrun’s founders stood out to Reynolds years ago, because of the practicality of their approach: “They talked about how they’d make money, rather than saving the world.” Since then, Sunrun has become “by far the largest” solar system installation company with over 300,000 customers.1 In response to Sunrun’s low costs, Reynolds explains, “What you want out of any company is somebody running it who’s paying attention to every penny.”
The Fund’s holdings also include gold miners. The rise in gold’s price this year has helped boost gold miners, many of which have improved their business models and are now offering solid dividends after restructuring and paying off debt.
1 Source: Sunrun: Sunrun Reports Second Quarter 2020 Financial Results, August 10, 2020.
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