HydrogenOne Capital Growth – Momentum building despite discount

The advisor notes that while shares of HydrogenOne Capital Growth (HGEN) have continued to fall, it believes that investors should be buoyed by the ongoing growth of the portfolio and the accelerating development of the green hydrogen sector.

The advisor points out that despite challenging macro-economic conditions, HGEN’s NAV grew 5.8% over 2023, while the portfolio generated aggregate revenue growth of 125%. It says that this momentum reflects the rapidly accelerating demand for green hydrogen products and services, highlighting that many of HGEN’s companies are investing heavily to increase productive capacity to cope with growing backlogs. It says that Industry dynamics also remain supportive as investment flows into the sector while government funding programmes provide further support.