Private equity investing is often described as a superior alternative to public equity investing with studies citing private equity’s historical outperformance vis-a-vis the S&P 500 Index. However, these studies frequently do not adjust for issues such as 1) appropriate benchmark selection, 2) current market valuations, 3) illiquidity, and 4) high fees.
Short selling strategies play an important role in a complete investment portfolio. Using environmental, social, and governance (ESG) characteristics, a sustainability-focused investor can incorporate a long/short strategy into his or her portfolio by going long the firms with excellent ESG characteristics and shorting those that have poor ESG performance.
If you are a conscious consumer, you probably make decisions in your day-to-day life to support good businesses and business practices. You may avoid certain products or companies because you disagree with their principles.
In the late 1990s, Nike’s brand image had become increasingly tarnished due to a wave of environmental and safety scandals, with each scandal more painful than the next….. Nike’s response?
Don’t let the conservative dress habits of the financial services industry fool you; the financial world is far from
immune to fashion trends, at least when it comes to financial products.
In this analysis, we argue that applying ESG integration concepts to short selling has the potential to uncover opportunities that can generate attractive returns, mitigate risk, improve diversification, and allow one to invest in better alignment with one’s values.