An Environmental, Social, and Governance (ESG) approach embraces the idea of investing in companies that are committed to sustainable environmental practices, demonstrate ethical social behavior, and have robust corporate governance standards. At DGHM, we strongly believe that investing in high quality businesses that embrace ESG opportunities reinforces our ultimate goal of delivering superior risk-adjusted returns.
DGHM AllCap Value ESG
DGHM’s ESG strategy utilizes the same rigorous quantitative and fundamental analysis applied to DGHM’s legacy products in finding the ideal tradeoff between valuation, profitability, and capital efficiency across the market capitalization spectrum. The strategy further integrates an ESG overlay upon our universe.
We start by eliminating companies that derive the majority of their revenues from tobacco, gambling, consumer firearms, adult entertainment, and alcohol. We build upon this by using our internal scoring methodology to further improve the portfolio’s overall ESG profile and eliminate, re‐weight, or substitute for poorly rated companies.
We believe ESG investing can encourage environmental stewardship, lead to safe and dynamic workplaces, and promote robust corporate governance standards.
We invite you to learn more about DGHM’s ESG investing philosophy and process through our ESG Principles and DGHM AllCap Value ESG factsheet.