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 Canadian Solar Inc. (NASDAQ: CSIQ ). Canadian Solar Inc. (NASDAQ:CSIQ) manufactures solar photovoltaic modules and develops, builds, and operates solar power and battery storage projects. Its performance is influenced by solar demand, module pricing, manufacturing conditions, and renewable energy policy. The one-month return of Canadian Solar Inc. (NASDAQ:CSIQ) was -12.43% while its shares traded between $9.95 and $34.59 over the last 52 weeks. On October 14, 2026, Canadian Solar Inc. (NASDAQ:CSIQ) stock closed at approximately $10.33 per share, with a market capitalization of about $696.62 million.
Guinness Sustainable Energy Fund stated the following regarding Canadian Solar Inc. (NASDAQ:CSIQ)in its Q3 2026 investor letter:
"Within clean energy equipment, solar stocks were an additional source of drag, with Canadian Solar Inc. (NASDAQ:CSIQ)(-28.1%) falling back from its early-June highs. Higher rates, reduced policy support and the sell-off in semiconductors weighed on all three ( Click Here To Read The Letter In Detail )."
Copyright: phillipminnis / 123RF Stock Photo
Canadian Solar Inc. (NASDAQ:CSIQ) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . As per our database, 22 hedge fund portfolio held Canadian Solar Inc. (NASDAQ:CSIQ) at the end of the second quarter, compared with 20 in the previous quarter. While we acknowledge the risk and potential of Canadian Solar Inc. (NASDAQ:CSIQ) 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 Canadian Solar Inc. (NASDAQ:CSIQ) and shared our views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
This article is originally published at Insider Monkey .
