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Socially Responsible Investing
Socially responsible investing (SRI), also known as sustainable, socially conscious, or green investing, is an investment strategy which considers both the financial return of the investment and the social good of the investment.
Socially responsible investors demand corporate practices that promote environmental stewardship, human rights, or one of any other criteria the investor might want to support. Most avoid investments in alcohol, tobacco, gambling, pornography, weapons and other industries that contradict their values. The areas of concern recognized by the SRI industry are sometimes summarized as ESG issues: environment, sustainability, and corporate governance.
I started many years ago as a stockbroker specializing in socially responsible investing. There was only one fund at the time – the Calvert Fund. It ended up being the #1 performing fund for three years in a row out of all the mutual funds available at the time. I saw first-hand the impact investors and consumers have when they consciously decide to where to spend their consumer dollars and where to invest.
Today, socially responsible investing is called Environmental, Sustainable Governance or ESG. As you can see from the chart below. Socially Responsible Investing is growing and expected to reach more than 9 billion dollars by the end of 2015.
Enjoy the Show,
The show opened with a discussion about the history of Socially Responsible Investing and how it has come to become known as Environmental, Sustainable Governance or ESG. Examples of socially responsible companies were discussed and the various ways one can invest in them.
Mutual funds that specialize in ESG were discussed and guidelines were given on how to decide between funds and how to truly evaluate a load vs. no-load fund. The example of Sea World was given as a potential short prospect for those that invest in options. Private placements and B corps were also discussed.
Dean shared what he has learned from the billionaires he has known and shared information about his upcoming books.
Guest Bio, Dean Tinney
Dean Tinney has over 30 years experience in originating, allocating, and managing capital. He is the founder and Managing Member of Gama Global Investment Advisors. Gama Global Investment Advisors is named after Vasco de Gama, the Portuguese explorer. Execution and custody for Gama Global Investment Advisors clients is provided by Schwab Institutional Group.
Over those years he has helped clients navigate through all kinds of markets. The crash of October 19, 1987, the 1998 collapse of Long-Term Capital Management, the implosion of the dot-com bubble in 2000 & 2001, the financial crisis of 2008, and the May 6, 2010, flash crash.
His institutional clients have allocated close to $2 Billion to leading sponsors of private equity, venture capital, and hedge funds.
His local individual clients like investments that reflect their personal interests in food and wine but most importantly have economic merit. They have originated and allocated capital to many local bay area restaurants and wineries. He brings a unique perspective and value as a former owner/operator of nightclubs and restaurants. He is has been registered with FINRA as a Registered Representative, a General Securities Principal, Financial Operations Principal, Registered Options Principal and a Municipal Bond Principal.
Thousands of securities professionals have attended his lectures and workshops. He has been hired to tutor senior management at many leading financial firms including Blackrock, TPG Capital, Carlyle Group, Cargill, JC Flowers, Wells Fargo, Vanguard and Charles Schwab. He has led business simulations and team building exercises at Goldman Sachs, Citibank, and UBS.
He has designed, hosted and delivered institutional development programs for money managers and a foreign government. He advised that foreign government and its central bank on the establishment of their sovereign wealth fund and their US investments. He continues to write, teach, and lecture on securities markets.
Specialties: Alternative Investments (Private Equity, Venture Capital, and Hedge Funds). FINRA 1060b transactions. Local Bay Area investments by invitation only (Private Placements). Hedging and diversifying concentrated stock positions. Derivatives: Collars, Protective Puts, Covered Calls, Credit Spreads. Private Wealth Management.