Green Fund of Hedge Funds

Fund of Hedge Funds Follows Green Movement

Bookbinder Capital Management LLC is following the green environmental movement with its new fund of hedge funds. Bookbinder launched the new fund, TerraVerde Capital Partners LLC, to generate returns from the changes in green investing and the alternative energies area. True to its name, TerraVerde will place assets with about a dozen "green" hedge funds--any fund investing in something that will "reduce the carbon footprint. Richard Bookbinder, the manager at the firm, has found at least 100 funds that meet his requirements although they may not explicetly market themselves as green.

The fund has a $1 million minimum-investment requirement and charges a 1% management fee, plus a 10% performance fee. While Mr. Bookbinder expects the fund to appeal to investors with a passion for saving the planet, he said his main objective is to generate positive returns.
“I don't wear Birkenstocks, I didn't go to Woodstock, and I don't drive a Prius,” he said. “But as we look at the green space, we see tremendous opportunities.” But even with a pragmatic approach to the green movement, Mr. Bookbinder isn't completely immune to the tree hugger movement.
“There's a real problem out there, and as the global economy starts to recover, there will be an increase in greenhouse gas emissions,” he said. “Climate change is a real game changer.” Mr. Bookbinder also supports the controversial cap-and-trade legislation that is designed to limit carbon emissions through taxation.
“We think that's a positive for us because it calls into question what is going on on this planet,” he said. “That's what our strategy is all about.”
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