Mon, Jul 28, 2014
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag