Carbon Bubble
Cliff Asness Urges Investors ‘Short Your Way’ to Greener Future
Quant pioneer says bearish strategy is vital in compelling companies to act responsibly.
Photographer: Chris Goodney/Bloomberg
This article is for subscribers only.
Climate-conscious investors tend to buy green stocks or build big stakes in less-responsible companies and aim to persuade them to change. They should also be short sellers, according to quant pioneer Cliff Asness.
Betting against stocks with high carbon emissions is vital for expressing an investor’s views, hedging against climate-change risks and actually affecting corporate policies, the co-founder of systematic powerhouse AQR Capital Management wrote in a Tuesday blog post.