OCTOBER 31, 2016
How Impact Investing Is a Win-Win for Hedge Funds
Deloitte offers five considerations for impact investing by hedge funds
Impact investing has been on the social finance scene for about a decade, but hedge funds have been slow to adopt the strategy, according to a new report from the Deloitte Center for Financial Services.
However, as hedge funds face performance challenges, they may be considering how this type of investing can support alpha generation as it will not only push hedge funds higher up the social spectrum, but also allow them to competitively differentiate themselves.
According to the report, impact investing can be defined as “the intentional allocation of capital to generate a positive social or environmental impact that can be—and is—measured.”
Impact investing, it says, blends the earlier concepts of investment screens and social selection criteria with the newer enhancements of intentionality and impact metrics.