Author: Lynk – lynk.global
The Rising Importance of ESG for Hedge Funds
Consumers are demanding ever more accountability from businesses regarding their values, business practices, and the overall impact they have on both the environment and society as a whole, a shift that has pushed ESG metrics (Environmental, Social & Governance) towards the top of alternative investment managers’ radar. Though ESG metrics are continuing to evolve, and still remain somewhat inconsistent, fund managers can no longer afford to ignore them —particularly as institutional investors push for more ESG exposure within their investment portfolios.
With global sustainable investing already totalling roughly $8 trillion and expected to reach $30 trillion by 2030, investors need to be aware of the rising importance of ESG investing. They should know how it could potentially impact their investment portfolios, and what to look for in such investments.
Electric vehicle stocks! Are they the future or a bubble?
Lucid is building electric vehicles (EVs) that are shattering the previous range and performance of other EVs. They have an eye-catching design, plus, they use their own powertrain technology.
“If you have a large enough battery to deliver the range you need, you also get higher levels of power and performance. You get performance as a consequence of range”, explains Peter Rawlinson, CEO/CTO of Lucid Motors.
In February, Lucid’s stock price shot through the roof after shareholders approved its merger with a SPAC called Churchill Capital IV. The event led to $4.4 billion in the financing, allowing Lucid to start production.
Lucid has since smashed through its production milestones and even announced the start of customer deliveries in October.
This is an electric car start-up that has a market cap greater than both Ford and General Motors (GM). It’s impressive considering it only became a public company this year. Furthermore, the company shows promise.
How Does COVID Drive the Global Fashion E-commerce?
The pandemic has accelerated digital transformation across all industries as businesses rush to adapt to new normal and changed consumers’ behaviour. Among them, e-commerce has skyrocketed, recording sales growth of 25.7 per cent for the year of 2020 globally, reaching over US$4 trillion.
Particularly, fashion e-commerce is heating up. The industry is expected to jump from US$550 billion in 2020 to around US$668 billion this year at a compound annual growth rate of 21.6 per cent, a report showed.
The fashion industry in general has shown mixed results during the past year. Traditional fashion companies such as J.Crew, Brooks Brothers filed for bankruptcy protection and other brands including H&M and Under Armour saw their revenue decline significantly last year, whilst online fast-fashion brands such as Shein, ASOS have delivered strong performance during COVID.
“What COVID-19 told us is how the vulnerability of having a supply chain spread out and the level of transparency affect some of the global brands and retailers,” said Reina Nakamura, general partner at Lyra Ventures. Lockdowns, logistics hurdles and shifting consumers’ behaviour have weighed on major fashion retailers.
After going through substantial changes and disruptions during the COVID outbreak, traditional fashion brands are gearing up to capitalise on the e-commerce boom while online fashion retailers continue to excel and innovate in response to consumers’ expectations.