Sustainable energy stocks have attracted the interest of hedge fund short sellers, according to a report in the Financial Times, with managers betting that the prospect of interest rates rise will mean companies with strong environmental credentials but weak earnings are less attractive to investors.

Sustainable energy stocks have attracted the interest of hedge fund short sellers, according to a report in the Financial Times, with managers betting that the prospect of interest rates rise will mean companies with strong environmental credentials but weak earnings are less attractive to investors.

The report says that while shares in sustainable stocks have drawn in billions of dollars of inflows from ethically minded investors in recent years, some have already begun to fall back as the end of pandemic-era financial support looms large.

Barry Norris's Argonaut Capital, Millennium Management, AKO Capital, and Gladstone Management are some the hedge funds said to be shorting the green energy sector, with wind turbine specialists Vestas Wind Systems and Nordex, as well as Tesla, among the companies targeted.