Billionaire Chris Hohn Explains Why Increased Disclosure Will Force

Описание: Few investors on the planet made more money in 2020 than billionaire Christopher Hohn, head of $35 billion in assets hedge fund TCI Fund Management. Hohn’s firm generated $4.2 billion in net gains last year, according to research from LCH Investment NV, led by large holdings in profitable blue chip companies such as Google, Charter Communications, Canadian Pacific Railways, Microsoft and Visa. Hohn deploys a unique blend of concentrated, long-term investing and corporate activism. In the past, he was one of the world’s most feared hedge fund investors, ready to wage war against perceived mismanagement or poor governance at massive companies like ABN Amro, CSX, Volkswagen and the London Stock Exchange. Last year, Hohn’s policing of financial markets played a role in the downfall of Wirecard, after he filed criminal complaints against payments processor, which has turned into one of Europe’s greatest accounting scandals. Most of all, Hohn’s stock picking has been superb in an era when active investment managers have struggled to keep pace with passive benchmarks like the S&P 500 Index. In 2019, Hohn’s firm generated $8.4 billion in profits after returning over 40%, more than any other hedge fund, according to LCH Investment NV, which publishes an annual list of the top-2o hedge fund managers as measured from their inception-to-date net gains. After generating $12.6 billion in gains over the past two years, Hohn ranks thirteenth all-time in gains, making investors $27 billion since 2004, according to LCH’s report. In recent years, Hohn has used his growing influence to pressure companies to better disclose their carbon dioxide emissions as a means to curb climate change. His ‘Say on Climate’ initiative is an effort to make companies better disclose emissions and benchmark their performance incentives to curbing carbon output. The initiative is backed by Hohn’s Children's Investment Fund Foundation, a $6 billion philanthropy funded by TCI profits. Recently, Forbes contributor Robert G. Eccles, a professor at the Saïd Business School, University of Oxford and an expert in in sustainability reporting critiqued Hohn’s Say on Climate initiative. Eccles argues Hohn’s initiative is overly broad, forcing all companies to increase their carbon disclosures. He calls for a more targeted approach. For the worst carbon emitters, Eccles recommends old fashioned shareholder activism; oust the ineffective board members in proxy battles, drive change from within. Recently, Hohn asked Forbes to continue the dialogue, submitting a rebuttal to Eccles’ op/ed piece, which argues that broad disclosure will help surface the totality of the emissions issue and begin to create benchmarks and incentives for needed change. Below is Hohn’s letter in full:Companies are responsible for at least 35% of global emissions, but only a small fraction disclose their emissions or have a climate transition action plan specifying short-term targets and actions.


All data is taken from the source: http://forbes.com
Article Link: https://www.forbes.com/sites/antoineg...


#hohn #newsdaily #newstoday #newstodayworld #newsworldfox #newstodayinusa #