Shorting your way to Net The #ESG Impact of your Portfolio

A thesis from our research partner New Atlantis Research

In this piece we highlight a company that we believe might be the most egregious #ESG violator in US Markets — however, they have swept most of the dirt under the rug and have convinced institutional investors accordingly

We are calling on the institutions invested in this name to review their standards (Blackrock owns 6.6%, Fidelity owns 4%) and we urge others to consider this as a short in order to improve portfolio net impact (as well as hedge beta, as we expect more turbulent times ahead)

In addition to the ESG woes, the company in question trades at a massive / uncalled for premium to it’s comp set and we also believe that their fundamentals are deteriorating as we speak

A big thanks to AQR Captial for their work on this theme which partially inspired this piece:

DISCLAIMER
You should assume that as of the publication date of any report or letter, NWTM Management LLC (along with or through our products, members, partners, affiliates, employees, and/or consultants), along with our clients and/or investors, has a position in all stocks (and/or options of the stock) covered in such report, and therefore stands to realize significant gains in the event that the price of any stock covered in such report declines. Following publication of any report or letter, we intend to continue transacting in the securities covered therein, and we may be long, short, or neutral at any time thereafter regardless of our initial recommendations, conclusions, or opinions.

To the best of our ability and belief, all information contained on this site is accurate and reliable, and has been obtained from public sources we believe to be accurate and reliable, and who are not insiders or connected persons of the stock covered herein or who may otherwise owe any fiduciary duty or duty or confidentiality to the issuer. Such information is presented “as is” without warranty of any kind — whether express or implied. NWTM Management LLC makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. All expressions of opinion are subject to change without notice, and NWTM Management LLC does not undertake to update or supplement this report or any of the information contained herein.

This is not an offer to sell or a solicitation of an offer to buy any security, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

While the material in this note is generally about investments, none of it is offered as investment advice. For members of the public, this means that neither the receipt nor the distribution of information though this note constitutes the formation of an investment advisory relationship, or any similar client relationship. The materials in this note are for informational purposes only and may not be relied on by any person for any purpose and are not, and should not be construed as investment, financial, legal, tax or other advice or recommendation.