Two Sigma Starts Impact-Investing Business Focusing on Workers

Two Sigma, the $60 billion quant firm whose co-founder has warned of the threat automation poses to the global workforce, is starting a group to back companies that develop their employees’ potential.

The new unit will make private “workforce impact” investments, with a goal to find consumer, business-services, education and health-care companies that “unlock human potential,” Two Sigma said on its website Thursday.

Investments designed to be both socially and financially rewarding are surging in popularity. The Covid-19 pandemic and racial unrest in the U.S. have underscored inequalities in society, vaulting the “S” in ESG -- or environmental, social ...