Thu, Jan 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Sino Forest and lack of clarity in China equities - the importance of ESG analysis

Monday, June 27, 2011

The following article was written by Michael D. Underhill, Chief Investment Officer at Capital Innovations LLC.

As a veteran of the institutional investment management industry for over two decades, I have seen a series of booms and busts in the market driven by irrational investor behavior, opacity of markets and lack of information. Managing global timber, infrastructure and agribusiness strategies affords a unique view on the market and reinforces the importance of conducting one’s research into specific issues around company fundamentals and sustainability (i.e., a company‘s capacity to prosper in a hyper-competitive and changing global business environment).

Corporate governance issues have plagued investors particularly with respect to corporate management, transparency, and regulation in emerging markets. Three recent examples of this are Sino-Forest Corporation, China Forestry Holdings, and Cathay Forest Products.

The environmental, social and governance (known as “ESG”) issues around Sino-Forest Corp, which led to its current debacle, were a confluence of events which included:

  • The lack of clarity in the Chinese log market.
  • Investor concerns over the economic slowdown in China.

  • WSJ's Heard on the Street column raised concerns about Chinese agriculture and forestry companies.

  • The call to question of the credibility of Sino-Forest Management due t......................

    To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  2. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  3. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  4. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would

  5. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalauMor Management in New York