(Bloomberg) -- A former partner at London-based hedge fund Clean Energy Transition, Nishant Gupta, is planning to launch his own long-short equity fund focused on the green economy. 

The new fund, named Kanou Capital, is raising cash ahead of its launch on July 1, Gupta said in a phone interview Monday, without disclosing how much he’s looking to raise. Kanou will wager on themes such as clean technology and the electrification of transportation as well as businesses affected by the global shift away from fossil fuels, such as industrials, power and commodities. 

“We will see a lot of investment in the energy transition in the next 25 years,” Gupta said. “There will be many winners and losers, so it’s a perfect time to start.”

The launch comes at a challenging time for new hedge funds looking to attract cash, with investor appetite for almost every strategy this year diminishing from 2023, according to a recent Goldman Sachs Group Inc. report. 

Kanou Capital was incorporated in mid-February, according to a filing with the UK’s Companies House. Gupta, who will be the portfolio manager, plans to start with a team of four analysts. 

Gupta was a partner at Per Lekander’s hedge fund Clean Energy Transition — which spawned from hedge fund group Lansdowne Partners — until late last year, and previously worked as an analyst at Fidelity. He is joining a new breed of managers who buy stakes in companies helping the transition, but also bet against firms that are failing to make the shift to sustainability. Still, Gupta emphasized that Kanou’s focus does not come under the umbrella of environmental, social and corporate governance investing.

“It’s not an ESG fund. It’s a transition fund,” Gupta said. “I’m happy to own companies that are dirty today, but have strong commitments to getting better.”

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