Tue, Nov 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds are encouraged to jump on the ESG bandwagon

Thursday, August 15, 2019

B. G., Opalesque Geneva:

How much sense does it make for a hedge fund to apply ESG criteria in its investments? It does make a lot of sense on two main counts: pressure from asset owners, and positive performance over the long term. Then there's also a moral imperative.

Environmental, social and governance (ESG) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business.

Today, hedge funds still lag long-only funds in doing applying ESG standards. But many are about to launch their own ESG-compatible products, says Franz Odematt, senior portfolio manager at Crossbow Partners.

Why should they, if that could affect their returns and investment styles? Well, he says, recent studies suggest that investors do not underperform over the long-term if they systematically apply ESG criteria to their investment process. So one should not fear underperformance. And one might even benefit from an ESG momentum, as ESG moves from niche to mainstream and good companies experience increasing inflows, which should push the stocks.

One does not have to sacrifice returns when investing in a socially responsible portfolio, according to Jamie Broderick from the Impact Investing Institute. "Th......................

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. HarbourVest raises $3bn for Co-Investment Fund V[more]

    Laxman Pai, Opalesque Asia: Boston-based HarbourVest Partners closed its latest private equity fund above the fundraising target - the $3 billion HarbourVest Partners Co-Investment Fund V was oversubscribed and above its $2.5 billion target. The fund's strategy is to create a global, diversif

  2. Opinion: Cliff Asness: It's 'time to sin'[more]

    From Institutional Investor: Timing the market can be "deceptively difficult," as quantitative investor Cliff Asness has pointed out before. But now, the AQR Capital Management co-founder believes that while factor timing is "an ugly thing," it is "about time we did some" - specifically when it com

  3. Investing: Hedge fund Whitebox places big bet on gunmaker Remington, Quant funds exit Japanese bonds in worst sell-off since 2013[more]

    Hedge fund Whitebox places big bet on gunmaker Remington From Reuters: Whitebox Advisors LLC, a credit-focused hedge fund, has been quietly capitalizing on Wall Street's ambivalence toward gun manufacturers by replacing some banks as a lender to Remington Outdoor Company. Whitebox

  4. Tech: Investors race to tech start-ups despite SoftBank stumbles, Two Sigma launches risk management software[more]

    Investors race to tech start-ups despite SoftBank stumbles From FT: Investors are planning to pour billions more dollars into later stage tech start-ups, even as Japan's SoftBank reels from a succession of faltering bets. Stephen Schwarzman's Blackstone plans to raise between $3bn and $4b

  5. Regulatory: Carried interest tax rules slated for 2020, official says[more]

    From Bloomberg: The Treasury Department is planning to issue regulations restricting how hedge fund managers can claim a valuable tax break early next year, a top Treasury official said. The regulations will likely bar money managers from using S corporations to take advantage of an exemption