ESG
OUR SOCIETY’S POSITION ON THE INTEGRATION OF ESG FACTORS
As our firm’s name suggests, Buy & Hold invests in companies with a long-term vision, conducting thorough research on each investment. We apply fundamental analysis criteria and align our interests with those of our clients, as B&H and its partners invest their own financial assets in the funds we manage.
Sustainability or ESG risk refers to any event or circumstance related to corporate governance, environmental, or social factors that, if it occurs, could have a real or potential material negative impact on the value of an investment. In this regard, B&H does not offer any specific product labeled as ESG nor is it classified under the European Commission’s framework for environmentally sustainable activities. The European Securities and Markets Authority (ESMA) has recently expressed concerns about ESG ratings, highlighting the heterogeneity of methodologies and, consequently, the current difficulty investors face in making comparisons. We understand that this lack of standardization will gradually improve as new regulations are implemented.
Buy & Hold dedicates significant time and effort to identifying, understanding, and analyzing publicly traded companies, seeking to invest in solid businesses managed by honest executives whose interests are aligned with shareholders. We evaluate the company’s financial position, the quality of its management team, business performance, competitive environment, cash flow generation, and, of course, its valuation. Buy & Hold’s objective is to invest in companies with outstanding management teams, alignment of interests with shareholders, barriers to entry and/or competitive advantages, high returns on invested capital, and intrinsic value not yet reflected in their market price. This process includes not only the analysis of financial reports and statements but also interviews and meetings with key executives, employees, former employees, competitors, clients, suppliers, regulators, and industry experts. This analysis is conducted both before investing and throughout the investment period to ensure there are no changes that would challenge the initial investment decision.
For Buy & Hold, a comprehensive company analysis involves identifying and assessing all potential risks that may negatively impact its future value. Among these risks are corporate governance, social, and environmental practices, which could affect future value and, therefore, long-term shareholder returns. The holistic integration of risk analysis has been inherent to Buy & Hold’s investment philosophy for over ten years.
However, with the new ESG regulatory framework (Regulation 2019/2088, in effect since March 10, 2021), we have now incorporated additional risk control tools to monitor these factors more visibly and explicitly. This is supported by complementary risk analysis platforms, which are detailed in our ESG policy. You can access the full ESG policy at the following link:
