TY - JOUR T1 - Practical Applications of Hedge Funds: Resolving Myths about ESG Integration JF - Practical Applications DO - 10.3905/pa.2022.jaipa063 SP - pa.2022.jaipa063 AU - Dulari Pancholi Y1 - 2022/11/14 UR - https://pm-research.com/content/early/2022/11/14/pa.2022.jaipa063.abstract N2 - While environment, social, and governance (ESG) integration is widely accepted, hedge fund managers have integrated ESG factors into their investment process more slowly than other asset managers. Several myths and fallacies undermine hedge funds’ ESG conviction. In Hedge Funds: Resolving Myths about ESG Integration, from the Fall 2022 issue of The Journal of Alternative Investments, Dulari Pancholi of NEPC discusses the myths and fallacies that undermine hedge funds’ ESG conviction and embraces a view of ESG investing that serves to debunk the myths. She seeks to encourage wider acceptance of ESG considerations in the process of managing hedge fund investments. She explains how including ESG factors in hedge fund strategies can positively impact the funds and their clients. A hedge fund manager may be able to increase the fund’s future risk-adjusted return, without necessarily giving the portfolio a social slant, by taking ESG factors into account early in the original underwriting process. Senior leadership must actively support firm-wide adoption while being strategic with the use of time and resources. ER -