Our overriding mission: be a trusted partner who delivers superior results and brings eﬀective, insightful solutions to clients
Adjusting our operating procedures to incorporate responsible and sustainable practices across the ﬁrm
ESG factors can be important drivers of long-term investment returns from both opportunity and risk-mitigation perspectives
Consider ESG factors in context: materiality depends on asset type, strategy focus, geography, industry, etc.
Meet managers where they are - engage managers on sustainability to drive portfolio returns over the long term
Pursue continuous improvement as our knowledge and experience with this topic deepens
Corbin endeavors to productively engage in the ESG arena. Since we have not previously had an active and formal ESG policy, we’ve spent significant time and energy to understand the landscape and how we can sensibly incorporate ESG factors into our organization and investment process. We’ve studied much of the relevant research, and met with supporting organizations, industry associations, and various constituents across the asset management ecosystem.
Part of what we’ve learned is that hedge funds broadly are the last holdouts in asset management to take on ESG issues in a meaningful manner. Most significant traditional, private equity and real asset firms have engaged to various degrees on the topic. We’ve heard a variety of reasons, but generally the idea is that more short-term investment styles don’t lend themselves to incorporating ESG factors. The flip side is that a recent P&I survey states that 41% of hedge funds are now incorporating ESG factors into their processes. That statistic is both surprising and encouraging – but regardless, our intention is to engage fully on the topic both internally and by collaborating with external constituents.
In pursuing an ESG framework, we believe there is potential to create value for Corbin’s clients through enhanced investment results consistent with client objectives. Importantly, this lens will also increase the appeal of Corbin as a trustworthy partner for employees, clients and the community broadly as we more effectively highlight our culture of integrity, transparency and good corporate citizenship.
We are guided by certain principles as they relate to Responsible Investing:
The overriding mission of Corbin is to be a trusted partner who delivers superior results and brings effective, insightful solutions to clients.
We believe that encouraging Responsible Investing is consistent with the above objective as a focus on evaluating ESG factors and sustainability can be important drivers of long-term investment returns from both an opportunity and a risk-mitigation perspective. It can help identify those business models that are most likely to sustain high returns and resist competitive pressures.
Corbin will increase our focus on, and where appropriate, adjust our operating procedures to incorporate responsible and sustainable practices across the organization.
We recognize that the importance of ESG factors vary across a multitude of factors including asset type, strategy focus, geography and industry. Our specific approach will not be prescriptive; rather we will consider these factors in addition to portfolio objectives, investment time horizons and portfolio construction guidelines. Accordingly, we aim to be both principled and pragmatic in our approach to incorporating relevant and material ESG factors into our investment due diligence and monitoring processes.
Our primary form of investing is via manager partners – accordingly, at this time we will not engage directly with companies; rather we will work with our manager partners. Our initial goal is to understand where our partners stand on this issue. Where managers have developed ESG strategies we will collaborate with and learn from them, where they have not we seek to raise awareness, influence behavior and where appropriate, shift our portfolio of managers towards investing in companies that operate in a responsible, ethical and sustainable manner towards all key stakeholders. We believe this engagement will be accretive to our portfolios’ returns over the long term.
Consistent with our focus on continuous improvement, our activities within responsible investing will develop as our knowledge and experience in this area deepen.