Omega Point Blog

Dangling the ESG Carrot

October 06, 2019

Up until now, we have evaluated companies that have been “bad actors” when it comes to ESG. For this week’s Factor Spotlight, we’ll take a look at how the institutional investment community is forcing positive change in company behavior and influencing practices that align with growing shareholder interest in broadly recognized ESG principles. We will turn the tables on the outdated...

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Julia Casals
Julia Casals

An ESG Tale of Tree Smuggling, DNA Testing, & Poisonous Gases

September 29, 2019

During Climate Week in NYC, I had the opportunity to speak with many investment practitioners, including CIO’s, fundamental PM’s and analysts on how they are integrating ESG into their investment decision making process. I had a particularly fascinating conversation with Gabriel Thoumi, CFA, who works with two ESG related NGO think tanks in the financial markets space: Planet...

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Julia Casals
Julia Casals

An ESG Assessment of Asset Owner “X”

September 08, 2019

I’m Julia Casals and this week I’ll be taking the reins of Factor Spotlight to address ESG from a different lens, that of the Asset Owner or investment allocator as opposed to the investment manager. I recently joined Omega Point as Head of Investment Strategy and my responsibilities will include working with our clients in applying quantitative techniques in their investment...

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Julia Casals
Julia Casals

Comparing ESG Metrics Across Major Indices

August 25, 2019

Last week, we introduced our new ESG overlay that allows you to see ESG KPIs alongside traditional factor exposures for any given portfolio. We’ve also recently introduced a new Compare feature that allows Omega Point users to compare performance, risk, and exposure between multiple portfolios, ETFs, or securities. Today, we’ll use this tool to analyze ESG characteristics for the ...

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Omer Cedar
Omer Cedar

Screening Stocks with an ESG Overlay

August 18, 2019

Over the past several weeks, we’ve decomposed the performance trends of various ESG KPIs (courtesy of OWL Analytics). Not only have we measured how individual ESG KPIs have performed independently, we’ve also seen how the aggregated pillars of Environmental, Social, and Governance have played out over the past 5 years. Through our analyses we’ve established that companies that share...

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Omer Cedar
Omer Cedar

How is Good Governance Rewarded?

August 11, 2019

Today, we’ll turn our attention to the individual KPIs that form the “Governance" piece of the "Environmental, Social, & Governance" investment framework. We’ll also provide this week’s update on market and factor (US & worldwide) trends. Unsurprisingly, we've seen Total Risk spike in the US and worldwide models, while the risk-on factors of Market Sensitivity and Volatility have...

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Omer Cedar
Omer Cedar

What Drives Socially Conscious Investing?

August 04, 2019
Continuing our “Summer of Sustainability,” we’ll be examining the KPIs that have driven returns for the Social portion of “Environmental, Social, & Governance” over the past 5 years. We’ll also provide an update on market and factor (US & Worldwide) trends over the past week. Of particular note, we’ve seen recent strength in Profitability and Earnings Yield, while Size has taken a...
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Omer Cedar
Omer Cedar

What KPIs Drive Green Investing?

July 28, 2019
Continuing our series on sustainable investing, we’ll be digging into the Environmental pillar of ESG in order to determine the specific KPI that the market has valued most within that bucket over the past 5 years. Our market and factor (US & Worldwide) updates will follow, with our chief takeaways being that Earnings Yield is surging in the US, while Market Sensitivity and...
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Omer Cedar
Omer Cedar

ESG Breakout Performance Trends

July 21, 2019

Since the kickoff of our “Summer of Sustainability,” we’ve been truly encouraged by the feedback we’ve received from our readers. It’s apparent that not only has interest in ESG among investors been growing over time, but that allocators are increasingly demanding that money managers incorporate an ESG framework in their strategies. Because ESG is such a potentially nebulous...

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Omer Cedar
Omer Cedar

Sector Biases When Building an ESG Portfolio

July 14, 2019

We hope you enjoyed your Fourth of July with your family while we took the week off to do the same. Continuing our “Summer of Sustainability” series, we’ll begin discussion on how to create a true ESG (Environmental, Social, & Governance) portfolio. This week, we’ll dig into performance trends in our aggregate ESG portfolio to determine how sector biases can affect portfolio...

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Omer Cedar
Omer Cedar