2021 September

Introducing Anti-‘ES’G smallcase by Stalwart Advisors

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Excesses at one end often create opportunities at the other, which can be leveraged by pragmatic investors. Environmental, Social & Corporate Governance (ESG) theme has gained tremendous momentum over the last few years with billions of dollars flowing out of companies that score low on some arbitrary parameters, to the companies that score high. In simple terms, it is a framework to rate businesses on how good are they for the environment, society and whether they have sound governance. On paper, this is certainly a desirable concept, but in practice it is extremely subjective with rating frameworks as well as corporates, trying to manipulate the system to suit their beliefs and situations. Investors are made to believe they can make excess returns while morally feeling good about it. The money …

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