ESG rating bias and the key role played by internal bottom-up ESG analysis

European Small Cap Equity

We’re regularly baffled by the ESG scores for companies we know are committed to a sustainable future

We are often vocal about the shortcomings of ESG ratings. This frustration is particularly acute for our European Small Cap Equity team who invest in companies that often do not have any coverage from ESG agencies. For those that are rated, the grades rarely reflect what we understand of the company through our bottom-up analysis and regular company interaction. We’re regularly baffled by the ESG scores for companies we know are committed to a sustainable future.

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Business Continuity at QUAERO CAPITAL

Portfolio management and client service to our clients

Dear Clients,

In these challenging times, we maintain the view we expressed last week (please see here). Basically, the news flow from this pandemic continues to deteriorate and the extraordinary measures taken by governments are likely to create much uncertainties and volatility in the short term anyway. Whereas it remains extremely difficult to make any meaningful forecasts, it seems to be a very violent but time limited shock to the world economy. Our conviction is therefore that fundamentals will be the determining aspect of the recovery. This should be a positive for active management and reinforces the relevance of our boutique “away from the crowds” investment model.

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Current Market Views

Investment Update

We would like to keep you up to date with our thinking in this period of extreme volatility and give you a quick update on our funds at QUAERO CAPITAL. In the fog of war, it is extremely hazardous to make any prediction and invariably, these tend to be highly contextual or misguided in a shock such as the one we have experienced this quarter.

We can however make a number of observations that we hope will be useful to our clients.

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Palm Oil

The spotlight in recent weeks has shifted back upon the palm oil industry. The negative connotations associated with the sector have continued to deepen, but there is a growing number of producers who offer a differentiated product, one made with a focus on sustainability. Worldwide, demand for the commodity has continued to rise which brings nations and climate activists to a crossroad, wondering whether sustainable palm oil can be produced whilst fighting climate change.

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Il existe une «prime de boutique» dans l’industrie européenne de la gestion de fonds de placement

Une nouvelle étude académique, menée par le professeur Andrew Clare de la Cass Business School de Londres avec la participation du Group of Boutique Asset Managers (GBAM), révèle l’existence d’une « prime de boutique » dans l’industrie européenne de la gestion de fonds de placement. Cela signifie que, dans certaines catégories d’actifs, les boutiques de gestion d’actifs apportent une valeur ajoutée en termes de performance par rapport aux grands groupes de gestion.

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La rigueur n’est plus de rigueur

QUAERO Capital - Word from the CEO
Photo: DR

Cette chronique de Jean Keller a été publiée dans Le Temps du 3 février 2020. Lire l’article.

Alors que la BNS semble enfermée dans la notion très conservatrice selon laquelle il faudrait souffrir beaucoup pour mériter un avenir meilleur, il est grand temps que nos autorités ouvrent enfin les cordons de leur bourse. Car les projets d’investissement majeurs ne manquent pas !

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Davos 2020

Photo by Evangeline Shaw on Unsplash

Climate urgency

The attention of business leaders and experts on the climate emergency is higher than ever. This is what emerges from the latest Global Risks Report published every year on the eve of the launch of the World Economic Forum. For the first time, the 750 business leaders and experts from all over the world ranked five environmental and climate issues as the most important risks facing the world in the coming year. In particular, it is climate inaction, extreme events and biodiversity loss that concern world decision-makers, factors that hadn’t made the list before ten years ago.

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