“The next generation is looking for sustainability and content. They’re not just looking at numbers and a good return. They want to have a little bit more than that. ”
— François Bourdon
In the world of hedge funds, where the focus on environmental, social, and governance (ESG) factors is often considered secondary, Nordis Capital stands out as a pioneer.
Born in a small farming town near Montreal, François Bourdon’s journey into sustainable investment is as unique as the hedge fund he co-founded. From working in agriculture to earning the moniker “Mr. Risk Manager” on the trading floor, François’ diverse experiences shaped his path.
After pursuing actuarial mathematics at Concordia University, François joined MetLife and later transitioned to risk management. Subsequently, he held diverse roles at Fiera Capital, ultimately becoming Chief Investment Officer and spearheading the launch of various investment strategies.
The turning point in François’ career came in 2020 when he decided to leave Fiera Capital. Fueled by a desire for greater impact and a shift towards sustainability, he joined Sustainable Market Strategies (SMS) with the goal of creating Nordis, a hedge fund built from the ground up around responsible investing.
Nordis Capital’s mission is to contribute to the fight against climate change and social inequality through sustainable market strategies. What sets them apart is their commitment to long positions aligned with ESG megatrends and their unique approach of taking short positions against companies that fall short on sustainability metrics.
Bourdon describes their approach as focusing on moving capital to support this mission. Nordis Capital identifies five ESG megatrends that will transform economies and societies, forming the basis of their investment approach:
- Achieving the Energy Transition
- Protecting Natural Capital
- Leaving No Person Behind
- Building Better Markets
- Productivity with Purpose
Their strategy is driven by the belief that companies lacking a sustainability focus will face higher risks and capital costs in the long run.
Tune in to this episode to learn more about François Bourdon’s journey and how Nordis Capital is pioneering responsible investing in the hedge fund landscape.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform. You can watch the interview on YouTube here.
What was your favorite quote or lesson from this episode? Please let me know in the comments.
SCROLL BELOW FOR LINKS AND SHOW NOTES…
SELECTED LINKS FROM THIS EPISODE:
- Connect with François Bourdon: LinkedIn
- Atlantis Capital Group
- COP 15
- Fiera Capital
- MetLife
- MSCI ACWI
- MSCI EAFE
- MSCI world
- SBTi Initiative
- Sustainable Market Strategies
- The Fourth Turning: An American Prophecy by Neil Howe
- VIX futures
PEOPLE MENTIONED:
- François Boutin-Dufresne (Managing Partner Nordis Capital)
- Felix A. Boudreault (Managing Partner Nordis Capital)
OTHER COMPANIES MENTIONED IN THIS EPISODE:
Bridgestone, Tesla, DoorDash, Draft King, LVMH, Nike, Blackstone, Domino’s Pizza, Carrier Global, Owens Corning, Flutter, Philip Morris, Exxon, Cameco, Nvidia, Cisco systems, Nortel networks
SHOW NOTES:
[00:00] Episode introduction
[02:30] François Bourdon’s journey into SRI
[18:31] Nordis Capital’s mission and strategies
[21:29] Who are the investors and AUM of Nordis
[26:14] The five ESG megatrends that will transform economies
[36:27] Nordis investment process
[47:08] Double materiality analysis
[50:30] Why are other players not pricing ESG
[53:40] How sustainable investing impacts corporate behavior
[01:00:27] The future of sustainable investing
MORE FRANCOIS BOURDON QUOTES FROM THE INTERVIEW:
“On the stock side, we think that leverage and valuation are going to be the two main driving forces in a higher interest rate environment. ”
— François Bourdon
“Investing in sustainability is not pie in the sky. It’s common sense to go where there will be more revenues, less regulation, and lower cost of capital. ”
— François Bourdon
