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Is there a tailwind in alternative energy?

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We have said for some time that value has emerged in the renewables space and last year we begun to make tentative steps towards a higher weighting in the category by buying shares in Vestas.

Year-to-date proxies for the alternative energy group are up around 40% in absolute terms which is the best performance since the beginning of 2009, as illustrated in the charts below.

While it is clear that our selective exposure over the longer run has been very beneficial we feel there are important catalysts on the horizon.

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