Venk Reddy: How do you look at ESG in Fixed Income?
Published on October 10, 2022
In this video, Venk Reddy, CIO of Sustainable Credit, explains how the team views ESG factors as risks, similar to other business risks, and that considering them is key to delivering a portfolio that meets their fundamental mandate.
Transcript
The way we think about it, if you are going to do fundamental analysis the way we do, you want to consider the largest set of risks that you can realistically consider because your biggest risk in fixed income is the thing you don't know about. There's asymmetry to the downside. Right? You get your coupon if things work out and you have a big credit event if things don't work out. So, the goal is to mitigate risk, and the more risks you consider, the better. And ESG risks are risks. They're definitively risks to a business. And for us, considering them alongside every other risk we consider is key to delivering a portfolio that meets its fundamental mandate.
Featuring
Venk Reddy
Chief Investment Officer – Sustainable Credit
Venk Reddy joined Osterweis Capital Management in 2022 as part of the Zeo Capital Advisors team transition. Prior to founding Zeo Capital in 2009, Mr. Reddy was a co-founder of Laurel Ridge Asset Management, a multi-strategy hedge fund, where he managed the credit, distressed, and event-driven portfolios. Previously, he structured derivative products and was head of delta-one trading as a portfolio manager within Bank of America’s Equity Financial Products group (EFP). Mr. Reddy also managed investments in event-driven situations, convertible instruments, and options at Pine River Capital Management and HBK Investments, where he started his career.
Mr. Reddy is a principal of the firm and a Portfolio Manager for the sustainable credit strategies. He is also a portfolio manager for the growth & income and flexible balanced strategies.
He currently serves as a Trustee of Lick-Wilmerding High School in San Francisco. He previously served as a Trustee and officer of the Katherine Delmar Burke School in San Francisco.
Mr. Reddy graduated from Harvard University (B.A. in Computer Science with Honors).
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ESG refers to Environmental, Social, and Governance.
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