David Triana Valencia on LinkedIn: ESG Investing and the Popularity Asset Pricing Model (PAPM) (2024)

Did you know how volatile thematic investing annual returns can be? Some thematics went from +49% to -31%.Can thematics flows rotation be considered as a good indicator of market sentiment and investors expectations?Sihem LABBAS Mehdi Abichou Stéphane Mattatia Jonathan Bitan, Pierre Debru Marlene Hassine KonquiMehdi Alighanbari, Ketaki Garg, Ashish Lodh Elvira KuramshinaBSD Investing L'ALLOCATAIRE #etfs#thematicinvesting#investing#thematicinvesting#thematic#assetmanagement

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"If only there were an economic theory we could leverage to rise above the binary, politicized landscape, that would help us understand the different impacts of ESG analysis on risk and expected return and how such considerations should or should not influence portfolio construction for different investors. Fortunately, we have such a theory — the popularity asset pricing model (PAPM)!" - Enterprising Investor -https://lnkd.in/enCqCFpHMore on PAPM -https://lnkd.in/eWg_JvT2More on ESG -https://lnkd.in/epV9JKiB

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"If only there were an economic theory we could leverage to rise above the binary, politicized landscape, that would help us understand the different impacts of ESG analysis on risk and expected return and how such considerations should or should not influence portfolio construction for different investors. Fortunately, we have such a theory — the popularity asset pricing model (PAPM)!" - Enterprising Investor - https://lnkd.in/enCqCFpH More on PAPM - https://lnkd.in/eWg_JvT2 More on ESG - https://lnkd.in/epV9JKiB

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Get a clearer picture of an investment’s environmental and social impact. Let’s discuss how our tools can help you meet your values-based investing goals - call me at 650.234.5883, or e-mail douglas.keyston@morganstanley.com

Get a clearer picture of an investment’s environmental and social impact. Let’s discuss how our tools can help you meet your values-based investing goals.#ImpactInvesting #SocialImpact #MorganStanley

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Get a clearer picture of an investment’s environmental and social impact. Let’s discuss how our tools can help you meet your values-based investing goals.

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Get a clearer picture of an investment’s environmental and social impact. Let’s discuss how our tools can help you meet your values-based investing goals.

Good stuff from Thomas Idzorek covering all things popularity (not like being popular in high school, more like investing stuff).PAPM (aka the popularity asset pricing model) incorporates both the underlying fundamentals of CAPM (aka capital asset pricing model) as well as “disagreements” and “tastes” that can lead to pricing anomalies.Tom, along with Roger Ibbotson, Paul Kaplan, and James Xiong, Ph.D., CFA have done quite a bit on PAPM over the years (lots of great links at the end of article). This particular piece for Enterprising Investor for the CFA Institute explores PAPM for the latest hot button issue (especially in the DC space!): ESG investing.As noted in the of the article, I think there’s going to need to be healthy degree of agreement on the ability to disagree on all things ESG in the future, but PAPM is a useful way to think about how these perspectives can affect asset pricing in a way that other models (aka CAPM doesn’t)!https://lnkd.in/gCWKveSE

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Get a clearer picture of an investment’s environmental and social impact. Let’s discuss how our tools can help you meet your values-based investing goals.

Get a clearer picture of an investment’s environmental and social impact. Learn more about how our tools can help you meet your values-based investing goals.#ethicalinvesting #denverwealthmanagement

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