Blood and Gore hit funds
Generation is taking a social approach to long-term investing, writes The global fund management industry is about to be hit unexpectedly with Blood and Gore.
This morning, in London, David Blood, former chief executive of Goldman Sachs Asset Management, and Al Gore, the former US presidential hopeful, will launch their new firm, Generation Investment Management.
The boutique will invest in long-only global equities - but with a difference.
Mr Blood, who will be managing partner, explains that Generation will integrate traditional equity analysis with sustainability research.
Mr Blood rejects any suggestion that the firm is concerned with "green" investing. Sustainability is distinct, he says, because it combines the principles of economic growth, environmental stewardship and social accountability. The approach, he adds earnestly, is primarily about delivering superior returns to clients.
Generation plans to take into account a broader range of issues than traditional equity research can capture. Says Mr Blood: "Social, environmental and geopolitical issues can materially impact a company's ability to sustain returns. Generation will invest in companies that manage these risks. It is just a more sensible way to invest."
Mr Gore, who will be chairman, cites an example: "You can't properly value automobile stocks without considering long-term issues such as carbon intensity."
Generation believes that investors are ready to embrace its philosophy and point to structural trends that will help drive its business model.
Mr Gore points out that investors in supposedly long-only mutual funds see their stocks turned over rapidly and so "can't take significant advantage of the value that builds up [in companies] over time".
He adds: "Existing long-only funds that turn over stock are committing a tactical mistake as they are competing against hedge funds that can short. They are disadvantaged."
Mr Blood says: "Pension funds have a great advantage in that they can afford to take a long-term view. Trustees are being educated and influenced by managers and consultants that they can alter their time horizons and, in doing so, benefit from better returns."
Generation's fund - as yet nameless - will typically hold 30 to 50 stocks, mainly drawn from the MSCI World Index. "We will judge which industries are long-term and sustainable, which companies are outstanding and where we can add value," says Mr Blood.
Generation says it will levy a "basic" charge to cover costs but will only take a performance fee on a rolling three-year basis.
The firm hopes to start attracting funds in January. It will employ 20 or so staff, about half of whom will be investment analysts. Significantly, a quarter of the analysts will have sustainability expertise.
Generation will be headquartered in London's West End, a stone's throw from the Ritz Hotel, although it will have an office in Washington DC.
Mr Blood moved to the UK in 1993 and believes it makes sense to run a global equities portfolio from London because of time zone issues.
The firm's initial start-up and investment capital - worth "double-digit millions" - is coming from its six founder partners. "Our interests are aligned with the firm delivering superior returns," says Mr Blood.
A Goldman Sachs connection runs deep in Generation. Mr Blood spent 18 years at the top of the group, while Mr Gore has several close friend s working there.
Last year, each separately sounded out their chums at Goldman Sachs about the idea of starting a firm that married investment analysis with sustainability. Their mutual friends put them in touch with one another and Generation was born.
Not that Mr Blood will ever consider selling out. He was one of the minority of Goldman partners to vote against the company's flotation. He says: "Independence is by far the best way to run a fund management firm."
Mr Blood insists that Mr Gore is no bauble. The former vice-president, who authored Earth in the Balance and helped secure agreement on the Kyoto protocol, the United Nations Framework Convention on Climate Change, says that he will spend between one and two days a week on Generation matters.
Mr Blood says: "Of course, he does have a great contacts book and views on sustainability. But we need his broad thinking on these issues and active participation in our investment strategies."
美前副总统戈尔投身基金管理
近日，高盛资产管理公司(Goldman Sachs Asset Management)前任首席执行官戴维?布拉德(David Blood)和曾经竞选美国总统的阿尔?戈尔(Al Gore)在伦敦推出他们的新公司“Generation投资管理公司”(Generation Investment Management)。
这家专业投资公司将以只限长仓(long-only)的形式投资于全球股票，但投资风格与众不同。
布拉德先生将担任公司的管理合伙人，他解释说，Generation将兼顾传统证券分析与可持续性研究。
布拉德先生否认这家公司从事“绿色”投资。他说，“可持续性”这一理念非常独特，因为它结合了经济增长、环境管理和社会责任等多项原则。他认真地补充说，这一方式主要是关于为客户提供出色的回报。
与传统证券研究相比，Generation将把更广泛的课题纳入考虑范围。布拉德先生说：“社会、环境和地缘政治问题，能对一家公司持续提供回报的能力产生重大影响。Generation将投资于能管理这些风险的公司。这其实是一种更明智的投资方式。”
戈尔先生将成为公司董事长，他引用了一个例子：“若不考虑碳密集度等长远课题，你就不能恰当地为汽车类股定价。”
Generation相信，投资者将欣然接受它的投资理论，同时指出，一些结构性趋势将帮助推动其业务模式。
戈尔先生指出，投资于那些被认为只限长仓的共同基金的投资者会发现，他们的股票换手很快，因此“不能充分利用(企业)长期积累的价值”。
他强调：“那些频繁买卖股票的只限长仓基金正在犯一个战术性错误，因为它们正与能做短仓的对冲基金竞争，因而处于不利地位。”
布拉德先生说：“养老基金有很大优势，因为它们能够对投资持长远眼光。基金经理和顾问正在教育和影响资金托管人，即他们可以改变投资时间长度，并由此获得更好的投资回报。”
尚未命名的Generation基金在典型情况下将持有30到50只股票，主要从摩根士丹利全球指数(MSCI World Index)中挑选。“我们将判断哪些行业是有长远前途而且可持续发展，哪些公司是杰出的，而我们在哪里可以增值，”布拉德先生说。
Generation表示，它将收取“基本”费用以抵销成本，并只在三年滚动基础上收取业绩费。
公司希望从明年1月开始吸收资金。它将雇佣20名左右的员工，其中约半数将是投资分析师。引人注目的是，将有四分之一的分析师在可持续性研究上有专长。
Generation将把总部建在伦敦市中心的West End区，离利兹酒店(Ritz Hotel)很近，但公司也将在华盛顿特区成立一家办事处。
布拉德先生于1993年移居英国，他相信，由于时区的原因，在伦敦经营一家全球性股票投资基金比较合适。
公司启动和投资资本有“数千万”，资金来自其6位创始合伙人。“公司提供出众回报符合我们自己的利益，”布拉德先生说。
Generation与高盛有深厚的渊源。布拉德先生在高盛集团的高层呆了18年，而戈尔先生有几位好朋友在高盛工作。
去年，两人就开办一家结合投资分析与可持续性的公司一事，各自试探性地询问了在高盛的朋友。他们共同的朋友安排两人接洽，Generation便由此诞生。
倒不是布拉德先生将考虑出售股份。他是投票反对高盛上市的少数几名合伙人之一。他说：“独立是经营基金管理公司的最佳方式。”
布拉德先生坚持认为，戈尔先生可不是摆设。戈尔先生是前美国副总统、还是《濒临失衡的地球》(Earth in the Balance)的作者。他帮助达成了《联合国气候变化框架公约》(United Nations Framework Convention on Climate Change)，即《京都议定书》。他表示，每周将花一、两天时间来处理Generation的事务。
布拉德先生表示：“当然，他的确人脉广泛，且对可持续性有很多看法。但我们需要他对这些问题的广泛见解，以及对我们投资策略的积极参与。”
