FP Foresight Global Real Infrastructure Fund on Clearway Energy, Inc.
Thesis
The managers maintain a constructive view of Clearway despite a guidance cut triggered by lower renewable-power generation assumptions. They distinguish it from companies building projects because Clearway does not take construction risk. Renewable resource availability is largely beyond management control, so they do not treat a disappointing generation period as a sign that the business model has deteriorated. The position is nevertheless exposed to broader rate-driven weakness in infrastructure assets.
“Unlike Grenergy, it does not take construction risk.”
Key risks
- Lower-than-expected renewable generation can reduce reported earnings.
- Renewable resource availability is outside the company’s control.
- Rising bond yields can pressure infrastructure valuations.