SAN FRANCISCO, US; December 8, 2009.- For Alex Miles, who once ran a water hedge fund and now manages $350 million at Kingfisher Capital, successful investing in water means going beyond it — commodities, power and efficiency technology are all ways to make a portfolio splash.
Water scarcity has become a global issue as climate change alters water availability, population growth raises demand, and contamination threatens clean supplies. But what seems to be an obvious investment opportunity has challenges — in particular, the belief that water is a public good, not a profit source.
"If water were not viewed as a human right, it would be a great investment," said Miles, who compares water shortages to gravity — inescapable.
Miles ran Aqueduct, one of the first hedge funds in water from 2006 to 2009. His Kingfisher's Value Opportunity flagship fund, which has water as one focus, has outperformed the Standard & Poor's 500 index by 3.65 percentage points annually between