GWM Asset Management has launched an ESG merger arbitrage hedge fund strategy.
The strategy with $270 million in assets has a focus on M&A in Europe and applies ESG criteria excluding controversial sectors.
Peter Sartogo, managing partner at GWM said “For some asset and wealth managers, excluding controversial sectors and stocks with a low ESG rating means risking reducing the universe of potential investment opportunities. However, we are convinced that taking in consideration ESG factors into the investment analysis can reduce risks and increase long term returns. For this reason, we decided to focus our efforts on sustainable finance and we are proud to be among the first ESG friendly hedge funds in Europe. The portfolio of our fund has an ESG rating of AA on a range that goes from CCC to AAA.”