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Incorporating Responsible Investing in Hedge Funds

Stockholm (HedgeNordic) – Certain hedge fund strategies such as trend-following can hardly engage in responsible investing, but more hedge funds are responding to rising investor interest in responsible investment. The Alternative Investment Management Association (AIMA) partnered with Simmons & Simmons to produce its Responsible Investment Primer, which provides insights into how hedge fund managers may approach responsible investment.

AIMA’s Responsible Investment Primer aims (a) to help investors understand responsible investing and its applicability and relevance to hedge funds, (b) assist regulators in developing regulation in this area, as well as (c) provide some clarity around the language of responsible investing, and facilitate meaningful conversations between managers, investors, and other stakeholders. Topics discussed in the primer include the compatibility of responsible investment and short selling, how hedge funds can manifest their commitment to responsible investment, among others.

Commenting on the release of the primer, AIMA CEO Jack Inglis (pictured) says: “Hedge fund managers understand that investors want their principles to be reflected in their investments. AIMA is committed to working with our members and other industry stakeholders to ensure that hedge fund investors have the opportunity to invest in accordance with responsible investment principles should they wish to do so. We hope that this Primer will contribute to a constructive dialogue between managers, investors, and policymakers on how to ensure a sustainable future whilst acknowledging the need to grow investors’ capital over the long term.”

The complete Responsible Investment Primer can be downloaded here:

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Eugeniu Guzun

Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index (NHX), as well as being a novice columnist covering the Nordic hedge fund industry for HedgeNordic. Prior to joining HedgeNordic, Eugeniu had served as a columnist for a U.S. journal covering insider trading activity, activist campaigns and hedge fund moves. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018.

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