ESG investing continues to enter the mainstream, as leading hedge fund Marshall Wace is reportedly planning a new $1 billion sustainability-themed fund, according to an article in the Financial Times. We spoke with a source familiar with the matter who confirmed the story as reported in the FT.
Marshall Wace is one of the world’s largest alternative asset managers, with approximately $45 billion in assets, specialising in long/short equity. The firm has over 240 employees, with offices in London, New York, and Hong Kong.
According to the report, the fund will invest in stocks with strong ESG ratings, while betting against weaker-rated shares, based on information from external analysts who focus on a range of sustainability issues.
The fund will utilize the firm’s proprietary system MW TOPS, which it uses to collect investment ideas from over two hundred sell side institutions and independent research providers. The TOPS architecture allows for global, diversified portfolios with differing risk and trading profiles, according to the firm.