A Radiant Approach
Investing for the Future
Radiant’s investment philosophy is based on the simple premise that there is investment opportunity to be found at the intersection of fundamentals and environmental, social, and governance (ESG) criteria. We believe that companies that are attractive along both dimensions will have a distinct advantage over their peers and will meet with outsized investment returns.
It is increasingly difficult to tease apart traditional financial statement items and ESG characteristics, as the latter is showing a greater ability to influence sales, earnings, cost and measures of risk. This is no surprise to those who have approached ESG as economic information in the past, but many investors are just now embracing this more holistic view of the threats and opportunities faced by companies.
We believe that the coming years will usher in profound changes with respect to investor assessment of company risk and upside opportunity – ESG and concepts of ‘impact’ will be central to this evolutionary thinking. By selecting stocks that are attractive fundamentally and from an ESG perspective, we take advantage of both the reward potential of proven risk premia and the additional alpha potential arising from a collective shift away from ‘shareholder primacy’ to ‘stakeholder capitalism’.
DRIVING POSITIVE CHANGE
Companies that are ESG and impact leaders today are better positioned than their peers for a future that is rapidly changing. And some companies, while not yet leaders, are on their way thanks to their commitment to meaningful and sustainable evolution. We see alpha in today’s leaders as well as tomorrow’s and we believe these will be the companies achieving the best outcomes for all stakeholders.
Radiant’s approach to ESG and impact is based on the belief that a better understanding of the full breadth of threats and opportunities facing companies will lead to both better investment performance, as well as better outcomes for society and the planet.
We see increasing overlap between company fundamentals and ESG considerations, but practically speaking, not all Positive Change companies are great investments. Our process employs models that are anchored comprehensive fundamental analysis that seeks to identify companies exhibiting the strongest financial profiles while eliminating those companies with attributes that are deeply unattractive on a risk-adjusted return basis.
Through our proprietary, systematic approach, we seek to build optimal portfolios at the intersection of Positive Change and Quality Fundamentals.
Our brighter future will be a form of investment that serves society and supports enduring businesses that thrive by meeting the needs of all constituents.
The depth to our determination to be invested in a better world knows no bounds.