Bain Capital is starting a hedge fund to bet on and against companies based on sustainable investing criteria as part of the alternative asset manager’s roughly $3 billion public equities business.
The firm, which already has a private strategy that makes impact investments, expects to launch the fund by October, according to an investor document viewed by Bloomberg. It will focus on consumer, financial, technology and health care stocks and invest globally in companies with market values exceeding $1 billion.
The fund will avoid investing in energy-intensive industries, aiming to run a low-carbon portfolio, according to a person familiar with the matter. It will have a daily redemption period and initially charge a management fee of 0.9% and a performance fee of 12.5% — less than the traditional 2-and-20 hedge fund model.
The public equities team, led by chief investment officer Joshua Ross, started implementing a sustainable framework into its investment process across strategies in 2018, the person said. Its $1.6 billion global equity long-short fund has delivered an annualized net return of 10% in the four years through July 31, according to the document. The group also runs a global long-only equity strategy with a similar framework.
A spokesman for Boston-based Bain, which manages about $140 billion, declined to comment.
Investment firms are pushing deeper into green strategies as investors funnel capital into the sector to help address climate change and other social issues. On the private equity side of its business, Bain raised its first impact fund in 2017 and has since backed 13 portfolio companies, according to its website. Its Double Impact strategy had about $1 billion of assets at year-end.
The new sustainable fund will integrate environmental, social and governance considerations into the investment process and assess how these factors will affect companies’ operating margins and earnings power, according to the document. It will aim to back firms that have good management structures, employee relations, compensation and tax compliance.
Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.
The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.
The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.
Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.
"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
