Hi, guys.
Shared a Launch Alert for the Humankind US Equity ETF in your honor. I thought the discussion of it was thoughtful and productive, and so decided to share. Thanks for it!
It also spurred, in part, the article on the fallacies of a "green bubble." It is the panic du jour among those scraping for clickbait articles. At base, the argument is "all of that money flowing into green investments" is creating a bubble. There are a couple problems with the argument. One is that the numbers underlying the bubble argument are sort of invented, which is why I stayed with the conservative $50 billion in inflows angle. The other is that funds are just a vehicle for accessing investments, they aren't the investments themselves. As a result, the funds can't be in a bubble ... though fund managers can choose whether or not to invest in wildly priced stocks.
Part of the question for next month is whether it's even worth mentioning the fallacy of the underlying stats? Depending on what you read, the amount investing in ESG sorts of ways might be $10 trillion ... or $20 trillion, $30 trillion or just north of $40 trillion which does sort of imply some methodological problems in the calculations.
Lots of "A" tier managers retiring, Fuss, Browne and Puglia among them. Much greater shift in the industry away from liquidation and toward M&A activity. You could, I think, make the argument that the mid-market is actually the death zone. Niche managers with distinctive products (Seafarer, Grandeur Peak) have a chance. Mega-firms have a chance. But all of those guys with 20-50 funds seem to be folding, mostly by selling to guys with 50-70 funds.
Wishing you a joyful month,
David
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