Today marks the 41st anniversary of the birth of the environmental movement, also known as Earth Day. To mark the occasion, Yahoo! Finance spoke with Gabelli SRI Green Fund manager John Segrich about finding alpha in an eco-friendly way.
As the website notes, there are few funds in the space that can boast double-digit returns like the five-star Morningstar-rated Gabelli SRI Green Fund. The mid-cap growth fund is up more than 17% in 2011, and it has risen over 30% from a year ago.
Solar stocks used to dominate the green, or more environmentally aware, investing space. But these days, Segrich says he "likes solar, but not necessarily solar stocks," and would avoid panel makers like First Solar (FSLR). He prefers solar companies "tied to volume" that produce poly-silicon, a raw material used to make panels.
His fund owns the international stock GCL-Poly Energy Holdings (3800.HK), but he also recommends the U.S.-based Globe Specialty Metals (GSM).