Jon Quigley believes the “men and women in lab coats, thick glasses and hats with propellers” can deliver successful ESG strategies
• Point 7: Does the company have outstanding labor and personnel relations?
• Point 8: Does the company have outstanding executive relations?• Point 9: Does the company have depth to its management?
• Point 10: How good are the company’s cost analysis and accounting controls?
• Point 14: Does the management of the company talk freely to investors about its affairs when things are going well but “clam up” when troubles and disappointments occur?
• Point 15: Does the company have a management of unquestionable integrity?
As you can see, several of what Fisher considers important traits can be classified as Social or Governance concerns. Ignoring these characteristics is to miss important information.
However, while ESG data is rapidly improving, the data is very different from the data quants most often examine (price, volume, financial statement data, and macroeconomic data):