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As Matt Levine often points out, there are two possible cases for ESG 1/ This will bring worse returns, but I'm willing to accept the loss in order to forward
by lordgrenville 5mo ago
As Matt Levine often points out, there are two possible cases for ESG
1/ This will bring worse returns, but I'm willing to accept the loss in order to forward values I support
2/ This will bring better returns, since the market underrates risks from bad ESG companies (e.g. the long-term return on capital for coal companies will be worse than the market expects)
People marketing ESG funds (or anti-ESG, same rule applies) usually emphasise the second.
> Anyone claiming they can consistently beat any large index is just delusional, aren't they?
This is obviously not true. RenTech would like a word.