Objective research to aid investing decisions

Value Investing Strategy (Strategy Overview)

Allocations for May 2022 (Final)
Cash TLT LQD SPY

Momentum Investing Strategy (Strategy Overview)

Allocations for May 2022 (Final)
1st ETF 2nd ETF 3rd ETF

Climate Solutions Stocks

March 7, 2022 • Posted in Animal Spirits, Fundamental Valuation

Are firms offering products and services purported to mitigate climate change compelling investments? In the February 2022 revision of their paper entitled “Climate Solutions Investments”, Alexander Cheema-Fox, George Serafeim and Hui Wang analyze international reports, regional net zero frameworks, research papers and news to develop a list of 164 key words/phrases associated with climate change solution business areas. They apply these key words/phrases to firm descriptions to identify 632 actively traded pure plays in climate solutions. They then characterize geographies, accounting fundamentals and valuation ratios for this sample and construct monthly rebalanced value-weighted and equal-weighted climate solutions portfolios (CSP). Using monthly firm fundamentals and stock trading data for these 632 firms from the end of 2010 through October 2021, they find that: (more…)

Please or subscribe to continue reading...
Gain access to hundreds of premium articles, our momentum strategy, full RSS feeds, and more!  Learn more

Daily Email Updates
Login
Questions?