Ativo Capital

Rigorous Thinking


Financial and economic commentary reflecting Ativo’s world view:

Ativo Highlights Diversity Support and ESG at Industry Conferences

Thursday, June 18, 2015

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Senior Portfolio Manager and Head Trader Adan Galvan is back in the office after his presentation at NASP’s Annual Pension and Financial Services Conference.  Speaking on the topic of “Trends and Hard Truths about MWBE Brokerage,” Adan shared Ativo’s track record in using minority brokers, described the importance of rigorous due diligence and best execution, and stressed Ativo’s commitment to supporting minority brokers, which reflects our own diversity in ownership and staffing.   Ativo, an equity sponsor of this year conference, was well-represented with Mike Brooks and new Relationship Manager Kelly O’Malley also attending. Ativo has been particularly active at…

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Sustainability a Fad?

Monday, December 5, 2011

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A book review in today’s Wall Street Journal had an “interesting” reference to corporate Sustainability efforts: “For all the talk of a “triple bottom line”—targeting people, planet and profits—few companies, in the U.S. at least, have truly taken their eyes off their stock price and quarterly profit.” The author’s implicit assumption is highly problematic. Of course companies are interested in making money! Far from being mutually exclusive, sustainability, when done right, can and does actually enhance shareholder value. Both the sustainability advocate and the corporate executive should realize that their efforts need not be at odds. In fact, a management focus on shareholder value is highly consistent with…

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A Real Return on Sustainability Webinar

Wednesday, August 10, 2011

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Click to view the webinar: A Real Return on Sustainability Is your company missing a Billion dollar opportunity or ignoring a Billion dollar risk? CharterMast, Ativo Research, one of the nation’s top ranked equity research firms, report on an innovative study that shows how sustainability performance has Billion dollar impacts on shareholder value. Are you looking to: Craft and integrate comprehensive sustainability strategies? Understand investment and market implications of sustainability? De-risk your business from regulation and market shifts? Make the business case and sell sustainability initiatives?   Numerous companies have realized that sustainability strategies have financial implications far beyond…

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ESG/Sustainability Investors Should Engage Directly with Company Executives

Wednesday, September 22, 2010

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Guest Post by Pamela Styles, Principal, Next Level Investor Relations LLC Investors and company executives should be concerned about the lack of time and attention investor relations officers (IROs) feel they have available to understand the constructive and rapidly evolving investor attention to ESG (environmental & energy, social issues and corporate governance)/Sustainability factors in investment decisions, especially given estimates of related global managed assets that range from $18 to $27 trillion (see Rigorous Thinking or UN Principles for Responsible Investing reports.) Thoughtful assessments in two recent Rigorous Thinking postings do not overtly speak to the investor relations dimension, but…

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The Shareholder Value Case for Corporate Responsibility

Tuesday, August 31, 2010

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Aneel Karnani’s “Case Against Corporate Social Responsibility” (Wall Street Journal, 10/23/2010) misses a critical dimension of this issue. When it comes to measuring shareholder value, conventional financial metrics such as earnings and NPV fall short, failing to incorporate factors such as public perceptions, risk profiles, and investor preferences, which can have a significant impact on stock prices and the returns shareholders actually realize. For example, the UN Principles for Responsible Investing reports that its members manage $18 trillion of assets in 36 countries, with some estimates ranging as high as $27 trillion managed globally according to these principles. Values…

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Does Good Corporate Governance Pay?

Monday, May 3, 2010

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The Economist website recently published an article addressing the linkage (or lack thereof) between good governance and returns to shareholders. Critics of reform point to a study by Lucian Bebchuk showing that test portfolios of well-governed firms no longer earn excess returns. Although we approach the issue differently than Bebchuk, we concur (at least generally) with his conclusions. Even though Bebchuk found no relationship between good governance and excess returns over the period studied, he did find a strong correlation between good governance and high Q ratios. This is eminently sensible. A high Q ratio is due to one…

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