Clean energy companies are emerging as an area of intense interest by some hedge funds, including the likes of SAC Capital Management, D.E. Shaw and even Goldman Sachs. The opportunity for a home run is obviously part of the allure. The world is ready for a truly hit product. At the same time, venture capital and private equity funds have stayed away. Most venture capitalists do not want to put up the massive amounts of money that these companies require, much more than the typical IT-type startup. Private equity firms may be daunted by the speculative nature of these companies. I think of them as akin to biotech companies. In many ways, they are perfect for hedge funds, though not all of them will pan out as investments.

For more:
- here's the Investment Dealers' Digest article (For FierceFinance readers)
- more hedge funds news
- more on the 'greening' of Wall Street