November 17, 2021
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The ESG index investor is an oxymoron. Index hugging leads to the tragedy of the commons in governance.
Actual governance comes from active owners. They need enough skin in the game to spend resources on aligning management.
We managed to increase the offer price on a Norwegian company with, conceivably, poor governance. The increased offer from the initial bidder came only days after their first board recommended bid, without any counterbid.
Please see my open letter to NattoPharma shareholders here: https://bit.ly/2NEGBr2