Sustainable investing has gained significant traction as more investors integrate environmental, social, and governance (ESG) factors into their investment decision-making process. Although there are many different sustainable investing strategies that investors can choose from, they are all intended to generate long-term financial returns while creating a positive impact on society and the environment.

In this episode, Rusty and Robyn talk with Venk Reddy, Chief Investment Officer of Sustainable Credit at Osterweis Capital Management. Venk joined Osterweis Capital Management in 2022 as part of the Zeo Capital Advisors team transition, where he brings knowledge and experience in credit investing and absolute return investing. 

Also a portfolio manager for sustainable credit strategies, Venk talks with Rusty and Robyn about what sustainable investing means, how sustainable credit differs from green bonds, and what catalysts could make sustainable investments a hit.

Key Takeaways

• [01:06] - The top things to watch in 2023.
• [02:45] - What brought Venk to Osterweis.
• [04:48] - What sustainable investing means.
• [07:12] - How sustainable credit differs from green bonds.
• [10:38] - Venk's insights into the future growth of the ESG market.
• [12:30] - How investors should allocate their funds to ESG investments.
• [14:12] - The catalysts that could make sustainable investments a hit.
• [19:42] - Venk's outlook on interest rates and sustainable income.
• [27:44] - One of Venk's favorite investments.
• [29:47] - How Venk maintains his physical and mental health to perform at a high level.
• [32:27] - What Venk has to say about the people he works with.
• [34:16] - Content recommendations from Venk.

Quotes

[06:41] - "Our goal is to align performance and progress. But to align performance and progress, you need a situation in which the investments you're making are truly impacted by the management team's decision to make more progress and improve their standing along the categories of risk that they have." ~ Venk Reddy

[12:17] - "The more investors focus on ESG as a risk, the larger that market becomes. Not because the market's getting bigger but because people realize that this approach is as appropriate for traditional portfolios as it is for mission-driven ones." ~ Venk Reddy

[18:02] - "Security selection matters when people think it matters, and risk is a long-term concept. Once we get to a place where that's the discussion around ESG, risks, and sustainability, the market will grow substantially." ~ Venk Reddy

Links 

• Venk Reddy on LinkedIn
• Osterweis Capital Management
• It's The End Of The World As We Know It (And I Feel Fine)
• Zeo Capital Advisors
• Carl Kaufman
• Howard Marks
• Michaels Stores
• The Intelligent Investor by Benjamin Graham
• Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts
• Mindset: The New Psychology of Success
• Blindspot: Hidden Biases of Good People

Connect with our hosts

• Rusty Vanneman
• Robyn Murray

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0034-OPS-1/6/2023