Principles for Investment
At Pearl Impact Capital we incorporate environmental, social and governance (ESG) factors into investment decision making. We believe that companies with strong ESG characteristics are better equipped to adapt to change, to evolve, and to avoid unnecessary liabilities.
Companies must mitigate the negative impact their operations have on the environment and strive to become more efficient in how they interact with nature. We believe companies with lower carbon emissions, other waste streams, more efficient water and other resource management systems have a competitive advantage.
Companies must consider their impact on all stakeholders, including the cultures and communities affected by their operations. We believe companies should have a positive impact on communities where they operate and have solid and trusting relationships with employees, customers, and suppliers.
Companies must behave as honorable corporate citizens and must act in the best long-term interests of shareholders. We expect companies to have sound corporate structures and polices in place with checks and balances to ensure compliance.
Our goal at Pearl Impact Capital is to generate competitive returns with lower risk, or volatility, over the long-term. This is achieved by thinking globally and long-term as well as practicing a disciplined approach to buying and selling investment securities.
We will look anywhere for investment opportunities and believe that attractive investments are found across geographies, sectors and market capitalizations.
We believe that maximum value is created over the long-term. As such, we look to hold investments across business and economic cycles. This assures sustainable growth with lower transactions costs and tax efficiency.
Markets don’t always get it right. Therefore, we look to take advantage of short-term market inefficiencies to establish positions or add to existing investments.
We will sell an investment in cases of valuation adjustments, availability of more attractive alternatives, or breakdowns in financial fundamentals or ESG performance.