Sat, Apr 10, 2021
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. SPACs: Investors sour on SPACs, Hong Kong is set to target first SPAC listing by end of year, How the American SPACs rocket has failed to take off in Europe, UK car seller Cazoo agrees to go public on NYSE through Och-backed SPAC, The SPAC boom is losing steam[more]

    Investors sour on SPACs From Institutional Investor: Is the blank-check bubble bursting?Shares of many special purpose acquisition companies are down 20 percent or more from the highs they hit in February. Many of them are blank-check companies that have announced merger partners but h

  2. PE/VC: Sixth Street, Owl Rock, and Dyal's dirty laundry spills into the open, Investors flock to European e-commerce start-ups hoping to take on Amazon, Private equity champion mocks Oxford academic over criticism[more]

    Sixth Street, Owl Rock, and Dyal's dirty laundry spills into the open From Institutional Investor: A battle by Sixth Street Partners to stop a landmark $12 billion deal to combine Owl Rock Capital Partners with Dyal Capital Partners continued with a vengeance this week, providing more

  3. New Launches: Atlas Holdings closes fourth PE fund at $3.1bn, Zigg Capital nabs $225m to invest in proptech startups, Canvas Ventures raises $350m to help bring intentionality back to early-stage investing, BlackRock and Fidelity launch first green bond ETFs[more]

    Atlas Holdings closes fourth PE fund at $3.1bn From PE Insights: Atlas Holdings has held the first and final close of its fourth private equity investment fund, Atlas Capital Resources IV LP (ACR IV) at its hard cap of $3.1 billion. The latest fundraising, which began in Novembe

  4. SPACs: UK stock market to lure SPACs with rules overhaul, Nuvation Bio flounders after EcoR1 SPAC merger, Singapore Exchange may launch regulatory framework for SPACs by mid-2021, SPAC listings slow to a crawl with bankers buried in paperwork[more]

    UK stock market to lure SPACs with rules overhaul From Yahoo Finance: Britain's financial watchdog has fired the starting gun on plans to overhaul stock market rules in a bid to lure more SPACs to the London market. The Financial Conduct Authority (FCA) on Wednesday said it woul

  5. New Launches: Amundi launches Just Transition for Climate fund, Index Ventures launches $200m seed fund, China's Hosen Capital hits $800m hard cap for third US dollar fundraise, Shackleton launches fifth venture secondaries fund[more]

    Amundi launches Just Transition for Climate fund From Bloomberg: Amundi has launched a European fixed income fund that will support energy transition. The Just Transition for Climate fund is managed by Alban de Fa?, head of fixed income ESG investing, and Dany da Fonseca, credit portfo