Mark Neuman – Constrained Capital and ESG Orphans

<p><strong>BIO:</strong> Mark Neuman is the CIO and founder of Constraint Capital. He is a CFA charterholder and creator of the ESG orphans index.</p><p><strong>STORY: </strong>Mark talks about constrained capital, ESG orphans, and his work around it.</p><p><strong>LEARNING:</strong> We can’t get to the future of energy without present energy. To win the renewable energy fight, we must put facts above feelings.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“We can’t get to the future of energy without present energy.”</strong></blockquote><blockquote class="ql-align-center">Mark Neuman</blockquote><p>&nbsp;</p><h2>Guest profile</h2><p><a href="https://www.linkedin.com/in/mark-a-neuman-cfa-14b04523a/" rel="noopener noreferrer" target="_blank"><strong>Mark Neuman</strong></a> is the CIO and founder of Constraint Capital. He is a CFA charter holder and creator of the ESG orphans index. He’s a 30-year Wall Street veteran and former global equity derivatives trader with Merrill Lynch, Susquehanna, Jones Trading, and Bay Crest partners. He’s a former event-driven hedge fund partner. In his recent investment project, he spent 1,000 hours of deep dive into all things ESG over the past six years. His goal is to deliver truth in ESG to protect and help investors make informed decisions with measurable results when understanding risk and reward.</p><p>In today’s episode, Mark talks about constrained capital, ESG orphans, and the work he is doing around it.</p><h2>Constraints on capital</h2><p>According to Mark, constraints on capital is a pattern that exists in the market based on policy, investment themes, and philosophies. Most recently, ESG (Environmental, Social, Governance) has been the most prominent example of constraints on capital. Constraints on capital cause misallocation and malinvestment. In general, they are starving specific industries and flooding others.</p><p>For example, in ESG, constraints were heavily implemented on fossil fuels, nuclear energy, weapons, alcohol, tobacco, and gambling. Bas