Bringing the battle against greenhouse gas emissions to investors, Ian Monroe, 35, is a breath of clean air for the hedge fund industry. The cofounding president and chief sustainability officer of Etho Capital, a sustainable-investment firm launched last June, has developed a new method for screening companies based on environmental, social and governance (ESG) principles that will form the basis for a hedge fund to be opened later this year.
San Franciscobased Monroe, who holds bachelors and masters degrees in Earth systems from Stanford University, where he teaches courses on sustainability, has dedicated his life to finding solutions to climate change. After finishing his masters in 2004, he worked as a climate consultant on energy and development projects in more than two dozen countries across Africa, Asia, the Americas and Europe with such institutions as the United Nations, the U.S. State Department and the World Bank Group. Monroe thought direct engagement with the public was lacking, so in 2012 he helped to create a gamelike online service called Oroeco that lets people compete with each other to reduce their carbon footprints. That year the Redwood Valley, California, native also began collecting and analyzing data on companies greenhouse gas emissions to estimate the amount of pollution associated with Oroeco users investment portfolios.
In 2014, Monroe, who still serves as CEO of Oroeco, started Etho Capital with Conor Platt, founder and CIO of Pittsburgh-headquartered hedge fund firm Confluence Capital Management, to bring mathematical rigor to sustainable investing. Last October, drawing on Platts investment know-how and Monroes models and data, the pair launched the Etho Climate Leadership Index, which tries to identify the most carbon-efficient companies in every industry; the next month they opened an exchange-traded fund that tracks the index. Ethos hedge fund, which will target 10 to 15 percent annual returns, plans to take long positions in climate leaders while short-selling industry laggards to create an essentially carbon-free portfolio.
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Hedge Fund Rising Stars of 2016Click below to view profiles
|Jessye BallMillennium MgmtSarah BernerAristeia CapitalJenna Bussman-WiseAIG InvestmentsMaureen ChangPoint72 Asset MgmtDennis ChenfuPershing|
|Charles Dufresne Jr.Sciens Capital MgmtWilliam FredaGraticule Asset Mgmt AsiaSamantha GreenbergMargate CapitalMark GurevichRopes & GrayTal GurionMariner Glen Oaks|
|Craig HuieUniversity of CaliforniaYusef KassimBlue Harbour GroupFlorian KronawitterWhite Square CapitalVikram KumarTT InternationalBrandon LevinJana Partners|
|Jonathan LevinGeorge Weiss AssociatesBrett MinarikAksiaIan MonroeEtho CapitalJason MorrowUtah Retirement SystemsPierre-Adrien NicolasSquarepoint Capital|
|Jamie PabstGreen Owl Capital MgmtParag PandeBlackstone GroupAgata PraczukMetLifeMax SaffianFortress Investment GroupMatt SatnickMSD Partners|
|Eric SingerViex Capital AdvisorsKatina StefanovaMarto CapitalReginald TuckerNew York State Common Retirement FundMichael WangCypress FundsSean WygovskyPolar Asset Mgmt Partners|