Invested In Climate

Hedge funds' role in climate action with Corbin Capital, Ep #90

Jul 9, 2024

35:43

Hedge funds aren’t exactly known for contributing to climate progress or other ESG goals for that matter. So I was surprised to learn about Corbin Capital, a firm that aims to leverage the activist strategies of hedge funds not just to generate market-exceeding returns for their clients, but to advance environmental and social objectives.

There are trillions of dollars invested in hedge funds that can make a difference in this all-hands-on-deck moment. So why not think about how hedge fund tools can help accelerate decarbonization and other environmental priorities?

To learn more about this opportunity and how Corbin Capital is pursuing it, I sat down with their Director of Sustainability Courtney Birnbaum. I learned a lot about hedge fund tactics, and the opportunity to invest in transition commodities, carbon markets and more. Lots to learn through this one – enjoy!

In today’s episode, we cover:

[2:47] Courtney’s path to working on climate & sustainability
[4:37] Corbin Capital & Courtney’s role there
[7:59] What is a hedge fund & how is it different than other investment vehicles
[9:23] The history of hedge funds & factors that have made them successful
[11:27] Why today is a good moment for hedge fund investing
[13:18] Uncertainty creating opportunities for hedge fund investing
[15:31] Influencing transformational change through hedge funds
[17:52] Examples of success stories
[20:29] Thinking about criticisms around lack of transparency
[22:13] What makes Corbin unique
[23:19] Climate opportunities for Corbin investors & the impact they’re aiming to have
[25:59] Litigation finance
[27:23] How hedge funds can play a role in decarbonization
[28:16] How hedge funds can play a role in the carbon markets & carbon credits
[30:28] Short selling as a strategy for improving corporate sustainability
[33:57] How do finance needs to change to better tackle today's climate crisis