When it comes to ESG hedge funds, the ESG doesn’t really matter if you cannot produce results. At HFR, we align our clients’ portfolios with their values, by identifying and partnering with top tier manager talent whose strategies postitively 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.
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
Identify and evaluate top tier ESG hedge fund talent
Partner with institutional allocators to create custom investment vehicles to access ESG hedge funds
ESG Multi-manager hedge fund strategy
ESG hedge fund index tracking vehicles, including the HFRX ESG Indices (Alternative Energy, Diversity, and Women)
Structure and distribute emerging ESG managers
ESG Hedge Fund Strategies
ESG Fund Categories
The best ESG investments will take full advantage of integrating ESG technology and data, and implement a strategy taking advantage of ESG themes.
It requires thorough ESG and investment due diligence to determining which category to place a fund into.
ESG Score Trajectory
Our investment team believes that it is not 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.