Al Gore is a funny flitty fellow, so it should come as no surprise that the former U.S. veep has flitted off to start a new global investment fund focusing on green stock-picking. No, he and his partners (or more appropriately, the investment managers and Al) are not sticking to companies with green-colored logos, but they have set themselves the following goal:
The firm aims to deliver higher investment returns by integrating traditional equity analysis with sustainability research, a fledgling area that combines the principles of economic growth, environmental stewardship and social accountability.
That is nice, of course, but it also sounds like a nice way to earn substandard returns. After all, limiting yourself merely to companies that meet some non-return-related standard is just another way of saying that you’re not going to cast the widest net in looking for returns.
So, how has green investing done? Well, there are various academic studies out there, the most optimistic of which says the following:
We construct two industry-balanced portfolios and compare both accounting and market returns of the “high polluter” to the “low polluter” portfolio. Overall, we find either no “penalty” for investing in the “green” portfolio, or a positive return from green investing. In other words, about the best you can say about Al’s new fund is that there is a chance it won’t hurt you.
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I don’t think this is all that innocent. Mr. Gore’s partner (from Goldman) is David Blood. So, you have a fund that promises lots of uh, blood and gore.
Oh, how did I miss that?! Blood and Gore, that’s just too good.
Hahahahah, good one! How did the google meeting go? And I’m more interested in what you’re thoughts are for Google long term. Is it going to be the next microsoft?