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Auriel Equities: Absolute Return ESG

Hedge funds that use environmental, sustainable and governance (ESG) principles when investing are scarce. The reasons range from a perceived impact on returns to it not being compatible with the short term strategy hedge funds often have. However, there are good arguments for including ESG guidance when investing. Data from Eureka Hedge shows that the Eurekahedge ESG Fund Index, which tracks the performance of 33 fund managers who include an ESG framework in their investment process, rose 8.36% from the beginning of the year to July 2017, while the Eurekahedge Equity ex ESG Fund Index didn’t perform as well, 7.93%, over...