Guinness Global Investors recently released its “Guinness Sustainable Energy Fund” Q3 2026 investor letter. A copy of the letter can be downloaded here. The fund faced a challenging third-quarter 2026 investment environment as rising interest rates, persistent inflation, and a rotation away from growth stocks weighed on renewable-energy and electrification shares. The Fund declined 8.1% during the quarter, underperforming the MSCI World Index, which gained 1.9%, as higher Treasury yields pressured interest-rate-sensitive industrial and utility holdings and an AI-related sell-off affected electrical equipment and semiconductor investments. Despite the quarterly weakness, the managers believe the sector’s long-term fundamentals remain attractive: wind and solar electricity costs have declined substantially, more than 90% of utility-scale renewable projects commissioned in 2025 were cheaper than the lowest-cost fossil-fuel alternative, and the Fund’s expected annual earnings growth over the next three years increased to around 17%. Looking ahead, Guinness remains constructive on renewable generation, grid investment, energy storage, and electrification, arguing that the Fund’s forward price-to-earnings multiple fell from 18.7 times at the end of June to 16.4 times at the end of September even as expected earnings growth improved, creating a more attractive valuation opportunity for investors seeking exposure to the energy transition. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Guinness Sustainable Energy Fund highlighted stocks like First Solar, Inc. (NASDAQ:FSLR). First Solar, Inc. (NASDAQ:FSLR) manufactures photovoltaic solar modules using thin-film cadmium telluride technology. The company supplies utility-scale solar projects and is exposed to demand for renewable electricity and changes in solar manufacturing policy. The one-month return of First Solar, Inc. (NASDAQ:FSLR) was -10.98% while its shares traded between $168.60 and $320.95 over the last 52 weeks. On October 14, 2026, First Solar, Inc. (NASDAQ:FSLR) stock closed at approximately $179.08 per share, with a market capitalization of about $19.09 billion.
Guinness Sustainable Energy Fund stated the following regarding First Solar, Inc. (NASDAQ:FSLR) in its Q3 2026 investor letter:
“US solar panel leader First Solar, Inc. (NASDAQ:FSLR) was amongst the Fund’s weakest performers as investors pivoted out of the solar industry over fears of the impact of higher interest rates (Click Here To Read The Letter In Detail).”
Guinness Sustainable Energy Fund Discusses First Solar, Inc. (FSLR) Amid Solar Industry Weakness
First Solar, Inc. (NASDAQ:FSLR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 64 hedge fund portfolio held First Solar, Inc. (NASDAQ:FSLR) at the end of the second quarter, compared with 67 in the previous quarter. While we acknowledge the risk and potential of First Solar, Inc. (NASDAQ:FSLR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns within a shorter time frame. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered First Solar, Inc. (NASDAQ:FSLR) and shared our thoughts on why the company keeps hitting new lows. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
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This article is originally published at Insider Monkey.