London-based long/short manager Auriel Capital has joined forces with Inflection Point Capital Management to create a joint venture that will focus on sustainability.
As part of the new joint venture—called Inflection Point Partners—the Auriel European Equity Fund, launched in 2007, has been renamed the Sustainable Absolute Return Fund. Under this new moniker, the fund will employ a systematic approach to trading liquid, pan-European equities in a long/short, beta and sector neutral portfolio.
Auriel says the fund will “provide a solution for investors who hold broadly diversified portfolios of European shares where ESG [Environmental, Social, Governance] issues are not being integrated into portfolio decision making. The fund targets 3-6% net return over cash with 6-8% volatility with low correlation.
IPCM founder Matthew Kiernan had previously run Innovest Strategic Value Advisors, an investment research firm sub-advising on $1.5 billion in “sustainability-enhanced” strategies. Prior to founding Innovest, Kiernan had served as director of the World Business Council for Sustainable Development in Geneva.
Larry Abele, chief executive for Auriel Capital, said in a statement: “Research into intangible valuation is often overlooked or viewed as too slow to be material. We have found that sector specific research into the material issues facing Europe’s major corporations adds significant value. We are excited to be working with IPCM to enhance our fund with new unique sources of alpha.”