HEDGE FUNDS & ASSET MANAGERS

Move beyond company disclosures & news to scientific observations

 

ACTIONABLE INSIGHTS on material risks

MethaneScan® Heat Map  shows methane leakage by company, updated daily. Illustrative – not actual data.


MethaneScan® Heat Map shows methane leakage by company, updated daily. Illustrative – not actual data.

Take oil & gas production – a high-hazard industry with significant legal, regulatory and political risk. MethaneScan® delivers actionable insights on key performance indicators such as environmental impact, safety and governance – via satellite remote sensing.

Gaining insights – before public reporting – can open up new opportunities for alpha generation and risk avoidance.

 

ESG incidents jolt markets

Investors have become less tolerant of corporate ESG incidents, as reflected in the sharp falls in the stock price of companies such as Johnson & Johnson, Equifax and Volkswagen following safety, data breach and gas emissions scandals.

Johnson & Johnson (JNJ) kept information from regulators and the public regarding the presence of asbestos in baby powder. Upon disclosure, a sharp move wiped $42B of Johnson & Johnson’s market capitalization in one day.

Johnson & Johnson (JNJ) kept information from regulators and the public regarding the presence of asbestos in baby powder. Upon disclosure, a sharp move wiped $42B of Johnson & Johnson’s market capitalization in one day.

 

OUR quant lab reveals actionable INSIGHTS

Integrative modeling of ESG-related data with fundamental factor models reveals where explanatory power is added to traditional factors such as value and momentum.

For example

  • Alignments with traditional factors such as value, size and momentum

  • Correlation with safety and governance risks

  • Proxy for company-wide ESG performance and validation of company-provided data

  • Correlation of short-term price and credit watch history with MethaneScan® alerts and other newsworthy events

  • Correlation with oil & gas production and other key performance indicators

  • Focus on positive ESG behavior as well as controversies uncovers hidden alpha opportunities

 

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Photography provided by NASA Earth Observatory