The regulatory risk premium in the US just got too high for one of Europe’s oldest activists.
Eric Knight, founder of Knight Vinke Asset Management, revealed that his fund has sold the last of its US holdings, declaring the market “uninvestable” under the Trump administration due to unpredictable policy application. Instead, he is pivoting capital to Europe, with a massive conviction bet on UK utility SSE.
🚫 THE US EXIT: Knight cites the Trump administration’s hostility toward green energy—specifically the pausing of offshore wind projects (hitting Orsted and Equinor)—as a dealbreaker.
- The Quote: “It’s become uninvestable because the rule of law is not applied uniformly… the headwinds are too strong.”
⚡ THE UK PIVOT (SSE): Knight is now lobbying for a massive scale-up of SSE, predicting its valuation could double from £28 billion to £60 billion within 5-10 years, rivaling oil giant BP.
- The Strategy: He is pushing SSE to retain 100% of its massive Berwick Bank wind project (rather than farming out stakes) to create a lower-cost “super-project.”
- The Performance: Since Knight began pressing the board in Feb 2025, SSE stock is up >60%.
💡 ANALYST TAKEAWAY: This is a stark example of capital flight driven by policy volatility. While the US offers tax cuts, Knight Vinke is betting that Regulatory Stability > Lower Taxes. By exiting the US to double down on the UK’s regulated asset base, he is effectively shorting American political risk and longing British statutory certainty. For energy transition investors, “predictable boring” is the new alpha.
👇 Energy Investors: Is the US offshore wind market truly “uninvestable,” or is the Trump dip the ultimate buying opportunity for the brave?