Truth in ESG: The Story of the ESG Orphans - ESG Orphans

The 3rd installment in the Truth in ESG series is here and it features The Story of the ESG Orphans”.

Mark Neuman, CIO and founder of Constrained Capital, talks about a few of the past episodes highlighting interviews with NYU’s “Dean of Valuation” and ESG skeptic, Aswath Damodaran, as well as with renowned energy expert Dr. Anas Alhajji.

Mark then talks about the thesis behind the Orphans, supported by research from hedge fund legend Cliff Asness along with more input from Damodaran.

Mark also discusses the performance of the ESG Orphans on multiple time horizons beating most everything else from value to midcap to SPY/QQQ to competing “anti-ESG” funds.

Lastly, Mark discusses suitability and what kinds of portfolios the Orphans complement.

TLDR

It’s working
Smart guys support the concept
Results are great so far
ESG backlash will continue henceforth
At year-end, retail and RIA will compare returns and ask, “What do I own in ‘ESG’ funds and why?” as fees are high, returns are low, and objectives have failed in traditional ESG funds

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The Constrained Capital ESG Orphans Index is a representation of companies that have business operations in one of the following industries: alcohol, fossil fuel energy, gaming, nuclear power, tobacco and weapons/firearms. The Index is calculated, administered, and published by Solactive AG, the Index’s administrator.

Constrained Capital, LLC is the owner of the ESG Orphans Index and the sponsor of the Fund.

Toroso Investments, LLC (Toroso) serves as investment adviser to the Fund.

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