Auriel Capital, a European equity long/short manager, has partnered with Inflection Point Capital Management (IPCM), an asset management boutique focused on sustainability solutions, to create a new joint venture, Inflection Point Partners (IPP).
The new joint venture delivers an absolute return overlay strategy for European equities which integrates traditional financial research together with sustainability analysis.
IPCM was formed by Matthew Kiernan, who has over 20 years’ experience in sustainability research and investing.
IPCM’s predecessor firm, Innovest Strategic Value Advisors, sub-advised on USD1.5bn in sustainability-enhanced strategies.
Prior to founding Innovest, Kiernan served as director of the World Business Council for Sustainable Development in Geneva.
Larry Abele (pictured), chief executive for Auriel Capital, says: “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.”
Kiernan says: “Partnering with Auriel allows us to take our insights from over 20 years of research into sustainability and turn those insights into an institutional quality solution for investors. IPP’s initial offering is a direct response to the growing demand from the owners of the USD30trn in assets who have signed up to the UN’s groundbreaking Principles for Responsible Investment.”
The fund initially launched in June 2007 as the Auriel European Equity Fund and has been renamed the Sustainable Absolute Return Fund. The strategy uses a systematic approach trading the most liquid pan-European equities in a long/short, beta and sector neutral portfolio. The fund will provide a solution for investors who hold broadly diversified portfolios of European shares where ESG issues are not being integrated into portfolio decision making.