Hedge Funds Are Stepping Up Exposure to ESG Strategies, UBS Says

Hedge fund managers are increasingly incorporating environmental and social metrics in their investments, according to research by analysts at UBS Group AG.

“Hedge funds have continued to step up sustainability integration into investment strategies,” according to the Jan. 10 note published by the Global Wealth Management business of UBS. There’s also “a subset pursuing dedicated sustainable investment deployment via equity long/short and credit strategies, mostly within thematic equities and green, social and sustainable bonds.”

Hedge fund clients also saw “viable options” to get access to so-called compliance carbon markets, UBS noted.

The investment industry is eyeing new possibilities within ...