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ANALYSIS: New ESG Hedge Fund Tops Activist List in Third Quarter

Nov. 5, 2020, 5:07 PM

Inclusive Capital Partners LP, a new hedge fund, has joined the top ten list of activist organizations by the number of campaigns conducted, according to data from the Bloomberg Terminal. During the third quarter, the fund managed four campaigns in total.

Inclusive Capital Partners LP is an ESG-focused hedge fund founded in June 2020 by Jeffrey Ubben after he stepped down as CEO of ValueAct Capital Management LLC. Inclusive Capital has been making investments in companies that promote environmental protection, support greenhouse gas emissions reduction, or pursue other sustainability-related goals. The four activist campaigns managed by Inclusive Capital in Q3 2020 were Nikola Corp, a provider of zero-emissions transportation solutions; Enviva Partners LP, a producer of processed biomass fuel; Unifi Inc., a producer of recycled fibers; and Lindblad Expeditions Holdings Inc., an ecotourism company operating cruise lines. These were inherited from ValueAct Spring Fund.

Sustainable Partnerships

Inclusive Capital is also a key investor in a partnership between Schneider Electric SE, a leading renewable energy microgrid developer, and Huck Capital Management LLC, a firm focused on investing in sustainable companies. The partnership formed a new company called GreenStruxure to develop and run on-site microgrids for small and medium-sized commercial and industrial buildings.

Continuing its long relationship with Jeffrey Ubben, Affiliated Managers Group Inc. (AMG), a large global asset management firm that supports ESG and sustainability issues, is a minority equity partner to Inclusive Capital.

While Inclusive Capital is new to the scene, it will be interesting to watch whether it remains at the top of the list when the year draws to a close.

This article was revised on Nov. 5, 2020, to clarify that these campaigns were inherited from ValueAct Spring Fund and are currently managed by Inclusive Capital Partners LP.

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