We view ESG characteristics
as markers of quality

Longwave Capital Partners has an investment philosophy anchored in a belief that for small caps, quality is a key driver of long-term investment outperformance. When we assess companies, Environmental, Social and Governance (ESG) components are integral in our broader fundamental research and are viewed as markers of quality.

Our current ESG process is designed to achieve the following:

1

An exclusion screen that eliminates specific categories from our portfolio.
2

A consistent and formal process for the assessment of each ESG component.
3

Scorecards that capture a combination of qualitative assessment and observable data to support the assessment by allowing comparability.
4

Direct linkage between our ESG assessments and the quality score applied to each company (formalising the link between ESG and quality).
5

The linkage of ESG to quality having a direct and measurable impact on our company valuations through the discount rate.
6

Maintaining Longwave Capital Partners’ status as a signatory to the UN Principles for Responsible Investment from Jan 2020.

1

An exclusion screen that eliminates specific categories from our portfolio.

For further information on how we consider and implement ESG in our investment process, contact us.

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