Warburg Invest AG and Alpha Centauri have partnered to launch the Climate Smart Europe Long/Short Equity fund, which employs a largely market-neutral investment strategy in approximately 60 European equities and aims to benefit from a transition into a more climate-neutral world.
The fund is classified as an “Article 9” fund under the EU disclosure regulation.
Stock selection follows a rule-based process in which relative attractiveness is determined by a low-carbon factor and several well-known equity factor premiums such as momentum, value and size. Long positions are dominated by stocks of companies with low GHG emissions and positive factor characteristics, while short positions are taken in stocks with high GHG emissions and low factor values.
