The Real Issue with ESG Investing

Mark Neuman, CIO and Founder of Constrained Capital, discusses the challenges with ESG as we have seen it heretofore. ESG is sold as a panacea when in fact investors don’t know what they own. This leads to very imbalanced risks and inferior risk-adjusted returns. ESG investors are paying up for worse outcomes and failed objectives. The job of RIAs and investors has gotten more difficult with the false narratives in ESG. Investors need to do more due diligence and customize their investments to achieve clear goals.

“Anti-ESG” is NOT Political. It’s an Investing Posture

The ESG Orphans Index & $ORFN is an apolitical investment thesis. These are excluded securities avoided by the ESG investing bubble. Hedge fund legend Cliff Asness called these high expected return securities. The ESG Orphans are fossil fuel, nuclear energy, weapons, alcohol, tobacco, & gambling. Shunned by malinvestment & misallocation of funds via ESG capital […]

Friday PM Musings

Friday Afternoon Musings, Thoughts Into the Weekend Been a tumultuous week. I think we learned a lesson about crowded investment spaces and herd mentality working the OPPOSITE of how it worked during the bull market of previous years. When everyone owns the same stuff, or over owns may be a better term, and sellers emerge, […]

Truth in ESG

Truth in ESG Global risks are rising every day. Energy and food insecurity seem to be atop everyone’s macro agenda. What caused this? How did we get here? Environmental, Social, and Governance (ESG) investing is the biggest investment force on Wall Street over the past decade. ESG combines social and emotional appeal to investing by […]

ESG: How Did We Get Here; Where’s Here; Where Are We Going? – Part 2

The State of ESG….Part II…Where is Here? In Part I, we discussed the evolution of themes and concepts on Wall Street and how over time, with each new iteration, the original concept gets diluted and the goal obfuscated in favor of higher fees, middling returns, and little to no investing goal achievement. These cyclical evolutions […]

ESG: How Did We Get Here; Where’s Here; Where Are We Going. – Part 1

The State of ESG….Part I At Constrained Capital we apply nearly 30 years of Wall Street experience to allow us a deep dive into ESG from all angles, digging into the complexities of the ESG investing movement and its evolution into the largest investment bubble of the past decade. We’re going to talk about the […]

ESG Investing: Investors Misled, Nobody Knows What They Own

ESG investors have been misled. ESG investing says one thing and does another. Those owning ESG funds may find their exposure runs counter to Wall Street legend Peter Lynch’s adage, “Know what you own.” This is a big risk in the markets. Mondelez (MDLZ) makes Chips Ahoy and Oreos. Coke (KO) and Pepsi (PEP) make […]