Constraints on capital yield investment opportunities with a contrarian, against-the consensus view.
Our Firm
Constrained Capital
Capital constraints are social, political, and regulatory influences that cause misallocation of capital and malinvestment. Sectors/securities under capital constraints provide higher expected returns over time. The higher cost of capital in these excluded sectors, should generate better risk-adjusted returns over longer horizons.
Constrained Capital was founded to help investors find smart, contrarian themes to opportunistically capitalize on greater expected return scenarios.
These are part of our differentiated strategies for investors who think critically.

Our Strategy
ESG Orphans Index
Over the past decade the greatest capital constraints in markets are due to ESG investing. This incongruous investing theme systematically excluded the following 6 sectors: Fossil fuel, nuclear energy, weapons/munitions, tobacco, alcohol, and gaming. The ESG Orphans Index is 25% Fossil Fuels, 25% Nuclear Energy, 21% Weapons/Munitions, 12.5% Alcohol, 12.5% Tobacco, and 4% Gaming. These are high-expected return securities due to ESG capital constraints imposed on them. As a result, they can provide greater risk-adjusted returns over time.
Who are the ESG Orphans
In the News
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One of the most egregious pro-ESG articles written in a while:
ESG skepticism/denialism pernicious risks. What a crock!
Russia 2022
FTX 2022
SVB/SBNY 2023
All part of ESG ruse in ratings. Pernicious risks, LOL.
Ex Fidelity guy. No shock! Just embarrassing!

Commentary: ESG skepticism and denialism are pernicious risks
Dismissing or ignoring material ESG risks is a pernicious and compounding risk to the markets.
www.pionline.com
Feckless knave speaks:
"It's getting personal."
Come on Larry. ESGU -20% 2022, high fees, failed objectives, false statements, huge risks.
As personal as it gets!
Cares on AUM, fees, power 100x more than ESG.
CNBC in past, "We're forcing behaviors at BLK."

BlackRock‘s Larry Fink omits 'ESG' from annual letter after recent GOP blowback
BlackRock CEO Larry Fink's much-anticipated annual letter deemphasized talk about the climate and said that companies ...
www.msn.com
DeSantis looking out for investors & constituents alike.
ESG investing raised costs of investing & lowered returns overall.
Also,it's piled up risks as everyone pushed into the wrong investments. Returns suffered. Fees were high.
Got $ORFN? Flows coming.

DeSantis Launches 18-State Alliance to Ban ESG Investing - ESG Today
The governors of 18 U.S. states* announced today the formation of an alliance, led by Florida Governor Ron Desanti...
www.esgtoday.com
Slowly then all at once. Flow spigots opening back towards ESG exclusions, the Orphans (US!) then on a relative basis flows come to ESG Orphans.
Got $ORFN. Over time, high expected return securities. Nobody owns these, especially relative to the market!

DeSantis to unveil alliance with 18 states to combat Biden's 'woke' ESG agenda
Gov. Ron DeSantis (R-FL) is expected to announce an alliance with 18 states Thursday. The group aims to "push ba...
www.msn.com
ESG LOL of the day:
BLK owned 380k shs SVB + indirect ownership via other vehicles $100mm. How ESG!
But wait, MSCI ESG "A" rating, Sustainalytics "Controversy level zero."
ESG a joke & big fraud.
Misdirection, high fees, zero understanding of real risk.

Silicon Valley Bank exposes ‘lazy’ ESG funds as hundreds bet on doomed bank
The collapse of SVB may go down as a textbook case of what happens when an asset manager tries to build a ...
www.financialexpress.com
@jordanbpeterson @FlyFrontier This is exactly how ESG:
Raises costs
Lowers returns
Fails objectives
Makes risks explode
It creates herd mentality.
Nobody knows what they own or why.
It benefits a few at the expense of many.
It's a shiny object use do misdirect and truly separate capital from its owner.