Alm Brand buys Headwaters for greentech fund

COPENHAGEN (Reuters) - Environment and renewable energy are themes in vogue among institutional investors, said Danish fund managers Alm Brand, who recently bought shares in the energy-efficient solutions company Headwaters Inc.

Alm Brand Invest's Environment Technology fund has about $33 million in assets under management (AUM).

"We have seen a stable inflow over the last year and expect that to continue since we have seen positive interest from institutional investors," Alm Brand Invest Senior Portfolio Manager, Equities, Thomas Schultz told Reuters.

U.S.-based Headwaters, whose shares have fallen more than 25 percent this year, provides products such as fly ash, an energy efficient insulation component, and services to the building and energy industries.

"We expect an increasing market for fly ash when the construction market rebounds, which will benefit the company," Schultz said.

He has also taken advantage of the recent slide in renewable energy stocks to add to the fund's holdings in the alternative energy and energy efficiency sector, which accounted for 38 percent of its AUM at end-February.

"We are still positive on the sector," Schultz said.

Recent purchases include China Longyuan Power Group Corp Ltd, the world's 5th-largest wind power generator, EDP Renovaveis, Vestas and U.S. SunPower Corp, he said.

The fund reduced its exposure to power generator maker Regal Beloit and Pall Corp, active in filtration and purification technologies, in February. Both stocks have risen more than 25 percent within the past few months, making them ripe for profit taking.

Top holdings at end-February included waste treatment project developer China Everbright International Ltd, waste collecting and treatment company Transpacific Industries, Itron Inc, which provides metering and data collection services to utilities, and automobile-parts recycler LKQ Corp.

(Editing by Sharon Lindores)