EGA and Cité Gestion partner to launch long-short fund targeting best and worst US corporate governance
Over 15 years of evidence the model, developed through Green Blue Invest's partnership with Swiss-based Stewardship & Governance Associates (SGA), has demonstrated that the language used by senior executives is indicative of the quality of corporate governance and company culture.
- Over 15 years of evidence the model, developed through Green Blue Invest's partnership with Swiss-based Stewardship & Governance Associates (SGA), has demonstrated that the language used by senior executives is indicative of the quality of corporate governance and company culture.
- Using these metrics, companies are assigned a core stewardship score, which determines the quality of their governance.
- Mattias Eriksson, Partner at EGA, said: "Governance is at the heart of company performance and applying a quantitative approach to assessing its quality allows the fund to systematically generate alpha from the best and worst managed companies in the S&P 500.
- Our academic model systemically harvests this governance premia and dynamically adjusts to changes in corporate language to ensure it is exposed only the best and worst managed companies in the index.