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

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Position Person Holds at Constrained Capital

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Median 30-Day Spread Percentage

30-Day Median Spread is a calculation of Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.

30-Day SEC Yield

The 30-Day Yield represents net investment income earned by the Fund over the 30-Day period ended on the date indicated by the Yield, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-Day period. The 30-Day unsubsidized SEC Yield does not reflect any fee waivers/reimbursements/limits in effect.