At HFR Investments, we identify and partner with top tier investment manager talent, whose strategies positively impact our world. We believe that ESG not only helps the world, but it will be proven that thoughtful and unique ESG hedge fund strategies will lead to outperformance. Our ESG Platform provides institutional investors with access to cutting-edge ESG strategies through seeding opportunities and custom portfolios.
Why ESG Hedge Funds?
Hedge funds can offer something their active long-only and passive peers cannot:
– Sustainable and socially responsible returns uncorrelated to stock and bond markets
– Shorting allows ESG investors to capture upside and downside
– A wider range of innovative ESG strategies
– Risk mitigation during periods of increased volatility
– Ability to engage with management to enact positive change
Hedge Funds are in a position to immediately take advantage of current ESG and responsible investing tailwinds.
Hedge funds are among the most sophisticated public securities investors, with cutting edge quantitative and fundamental strategies that make them well suited to solving ESG challenges.
Hedge fund due diligence requirements make it more difficult to pass off greenwashing as true ESG investing.
HFR ESG Hedge Fund Platform
To meet changing demand in the hedge fund market, HFR offers institutional investors an ESG Fund Platform—a unique opportunity to tap into the rapidly growing ESG Hedge Fund universe. Our ESG Fund Platform is an independent turnkey solution that gives institutional investors access to pioneering ESG fund managers, with seeding and founder’s share class opportunities.
The ESG Fund Platform offers institutional investors three options for allocating to ESG Hedge Fund managers:
• Direct allocations to ESG Hedge Fund managers
• Custom ESG Fund of Fund Vehicles: Dedicated or comingled fund of fund vehicles that will invest in emerging or established ESG fund managers
• Multi-manager Solutions: HFR offers investors an immediate investment solution to allocate to high-conviction ESG managers selected by HFR
ESG Hedge Fund Strategies
ESG Fund Categories
Our proprietary ESG and investment due diligence program categorizes funds into four groups:
ESG Score Trajectory
Our investment team believes that it is not necessarily about where a company scores today, but where the company is going and how quickly it is moving.
In some cases, that can mean investing in “dirty” (poorly ESG rated) companies as long as they have promising ESG trajectories and momentum.
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