Posts Categorized: United States & Canada

Regional and Sector Strategy: Monthly Update

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Our earnings momentum metric has been refined. In addition, we have also introduced a methodology for weighting ESG factors in sectors and regions. These modifications have resulted in an unusually large number of changes in recommendations.

Global Earnings Synthesis: On Track for Modest Gains in 2016

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Building on the recent analysis in our Regional and Sector Strategy: Monthly Update, we continue to embrace an outlook for just a single-digit increase in profits in 2016, which is in contrast to consensus estimates that imply a 21% gain in earnings.

Regional and Sector Strategy: Monthly Update

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We remain Overweight Information Technology (largest weighting in Overweight North America region) and Consumer Discretionary (largest weighting in Japan, our other Overweight). We continue to avoid regions with heavy exposure to commodities, most notably Latin America (Underweight), South Africa and Russia (both ranked Neutral).

Supreme Court Ruling Highlights Clean Power Plan’s Potential

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On February 9, 2016, the US Supreme Court (SCOTUS) granted a stay to the implementation of the CPP rule by the US Environmental Protection Agency (EPA). In our view, the intensity of the challenge from the states and certain industries, and the SCOTUS ruling that CPP should be halted while being litigated, demonstrates that the CPP has significant implications for the sector.

Tracking our Thesis on Nutritional Feed Additives

A group of baby chicks, standing under a warming light on a farm.

As we discussed in our October 5, 2015 report Antibiotics and Animal Health: Value-Chain Implications in the US, a confluence of regulatory action and heightened consumer awareness is exerting pressure on livestock producers to reassess their usage of antibiotics. Our optimistic view on specialty and nutritional feed additives is supported by Adisseo and Novozymes’ recent launch of a probiotics product.

Paris Agreement: Validates national and local actions

Environment change and global warming environmental concept as a scene cut in two with one half showing a dead tree shaped as a human head with pollution and the opposite with healthy green clean air and plants.

We view the Paris Agreement as accelerating the ‘race to the top’ in responding to climate change. Developed countries will need technologies and business models that de-carbonize their existing economies. Developing nations will focus on technologies that drive strong economic growth and improve living standards.

Global Earnings Synthesis

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As a complement to our Regional and Sector Strategy: Monthly Update we introduce a new publication that will examine in detail the outlook for global earnings on a regular basis.

Regional and Sector Strategy: Monthly Update

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We are becoming a little more cyclical once again. We are now upgrading the Industrials sector to Neutral from Underweight, largely reflecting improved valuation. We remain Neutral on the two sectors that are widely considered the most defensive: Consumer Staples and Health Care.

Antibiotics and Animal Health: California Raises the Bar

Concept of national healthcare system - California

On October 10, 2015, California Governor Jerry Brown signed into law SB 27, a bill limiting the use of medically important antibiotics (MIA) in animal agriculture, thus going beyond federal policy as outlined by the FDA. This action increases our confidence in our thesis that the potential for more restrictive regulation (as seen with SB 27) and shifting consumer demand pose a risk to antibiotics sales for animal health companies.

Regional and Sector Strategy: Monthly Update

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We are Underweight Energy, Materials, and Industrials. Our only Overweight is in Financials. We upgrade China and Russia to Neutral from Underweight.

Learning from History: How do Historical and Forecast Electricity Prices Connect?

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We believe that the rising electricity prices forecast by the US Energy Information Agency (EIA) in their Annual Energy Outlook 2015 do not account for the dampening effect of rapidly declining renewable energy costs and low financing costs. In particular, rooftop solar should act as a cap on the price that utilities will be able to charge retail customers while falling wholesale solar prices, set at a fixed price for up to 20 years, could reduce wholesale electricity prices for the long term.

Uber: Red Light, Green Light

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The decision by New York City to drop a proposed bill that would limit growth of for-hire vehicle (FHV) companies – such as Uber and Lyft – attracted significant media attention. Based on prior analysis, we reiterate our view that the status of providers (i.e., employees versus independent contractors) poses a greater risk to FHV companies…. Read more »

Scenario: What if electricity prices fell?

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US electricity prices have steadily increased in nominal terms over the last five decades. However, using history as a guide, we observe two distinct periods of falling prices driven by technology and government subsidies. We believe that a confluence of factors could once again result in structurally lower prices – with potential impact to power market participants.

Dissecting the “Sharing Economy:” Business model opportunities and risks

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Between Uber’s $50 billion valuation, Etsy’s IPO and the large venture capital infusions into Airbnb, the “sharing economy” is transitioning from a social movement to a large-scale commercial business model.

Regional and Sector Strategy: May Update

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We are now underweight the most cyclically sensitive sectors: Industrials, Materials, Energy. While we upgrade the CEEMEA region to Neutral from Underweight — in large part because of an improved earnings outlook — this likely reflects a modest rebound in oil prices, which remain 40% below year-ago levels.

Regional and Sector Strategy: April Update

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We continue to have a defensive tilt in our regional recommendations, and are Underweight the commodity-rich regions of Central and Eastern Europe, Middle East and Africa (CEEMEA) and Latin America …

Judges Announced for “Sustainable Games” Competition

Harvard Business School, Intel Education among Business and Entrepreneurial Leaders to Select Winner of $25,000 Prize Five global leaders from across business, the capital markets and academia have been selected as judges for “Sustainable Games:  The Business Model Challenge.”  The competition, which offers a $25,000 prize, is sponsored by Cornerstone Capital Inc., together with the Clinton… Read more »

The Economics of Automation: Quick Serve Restaurant Industry

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Increasing cost pressure. Labor and food represent a significant portion of restaurants’ cost structure. While these inputs have been relatively predictable in the past, the twin threats of rising wages and increasingly volatile food prices suggest a more challenging environment ahead. It’s not clear that cost inflation can be consistently offset by raising menu prices, so companies are considering new strategies to protect margins . . .

Regional and Sector Strategy: March Update

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Our regional strategy is unchanged. We continue to have a defensive tilt in our regional recommendations, and are Underweight the commodity-rich regions of CEEMEA and Latin America. Japan continues to be the top-ranked country. Over the past twelve months, share buybacks in Japan have been the largest of any country / region, the first time that country has been the global buyback leader since we launched the regional model in April 2014. We highlight changes in the Energy suggesting, perhaps, that stock prices in the sector have not fallen as fast as earnings estimates . . .

Regional and Sector Strategy: February Update

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Our regional strategy is unchanged, even with a heightened focus on monetary policies and exchange rates in the past month driven, in part, by fears of deflation. We continue to have a defensive tilt in our regional recommendations, and are Underweight the commodity-rich regions of CEEMEA and Latin America. Our sector strategy is also unchanged and remains “less cyclical, more defensive.” We maintain our relatively defensive posture given pockets of economic weakness globally. We are Overweight Health Care in North America, the U.K. and Europe ex U.K. We are Underweight or Neutral Energy in the majority of regions….

China & Russia: Policies and Markets

Cornerstone Capital Group hosted a call on Jan. 12 with geopolitical expert, Lionel Vairon, CEO of CEC Consulting. Dr. Vairon spoke about implications for the global economy given closer ties between Russia and China – including likely developments in energy, politics and the financial sector. Click below to listen to the call.   Dr. Lionel… Read more »

Regional and Sector Strategy: January Update

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This month we, upgrade Financials to Overweight from Neutral reflecting the combination of relatively attractive valuations and improving earnings momentum. In addition, Financials’ earnings estimate revisions are only modestly negative (i.e., downward revisions just outpace upward revisions), in sharp contrast to most other sectors where estimate revisions are strongly negative. Our regional strategy remains unchanged…..

Navigating the Recycling Industry

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My journey to the recycling world, is a circuitous one primarily driven by environmental and social motives. A child of immigrants from India and the UK, and one of six children, I never sought easy answers. We came from England with just the clothes on our backs. My parents had big dreams of not only… Read more »

Regional and Sector Strategy: November Update

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This month we, upgrade Financials to Overweight from Neutral reflecting the combination of relatively attractive valuations and improving earnings momentum. In addition, Financials’ earnings estimate revisions are only modestly negative (i.e., downward revisions just outpace upward revisions), in sharp contrast to most other sectors where estimate revisions are strongly negative. Our regional strategy remains unchanged. We are Overweight or Neutral the majority of developed regions (Japan, U.K., Australia, North America) and Underweight most emerging markets (Latin America, CEEMEA)….

A Closer Looks at GMOs

Experiment with green seedlings in the lab

Are laws requiring the labeling of food containing genetically modified organisms (GMO) justified? Do consumers have a right to know what is in their food, or will the labels simply confuse the public?

Market Summary: Overview

In a year of surprisingly muted market volatility, this month we saw risk assets tumble as investor concerns reached a decisive tipping point. Anxiety over a less accommodative Fed, the pace and sustainability of global economic growth, continued conflict in Ukraine, escalating violence in the Middle East, and even the Ebola crisis have investors fleeing… Read more »

Regional and Sector Strategy October Update

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Still defensive — We maintain our relatively defensive posture given pockets of economic weakness globally. We are Overweight Health Care in the U.K., North America and Europe ex U.K. We are Underweight or Neutral Energy, Materials and Utilities in the majority of regions Regional strategy — We upgrade the U.K. to Overweight from Neutral, in large part because the earnings outlook has improved materially. We downgrade CEEMEA to Underweight from Neutral….

Not Just a ‘Flash,’ But a Call to Arms

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I was still at the Securities and Exchange Commission, overseeing the Division of Trading and Markets, when I first heard about a small band of traders and technology experts at the Royal Bank of Canada who were using technology to tilt the playing field back in favor of ordinary investors. I could hardly have imagined… Read more »

Accelerating Impact in Real Asset Investing

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Written by James Lee, James Schaffer and Jaclyn Anku, Schaffer & Combs As the nation’s housing market rebounds, investors have taken notice. But with many still scarred from the protracted economic downturn, questions about risk remain.  But what if a real asset investing strategy could earn market-rate returns while simultaneously improving local communities?  OpenPath Investments,… Read more »

Flagship Research: Gauging Governance Globally – Macro & Micro Metrics

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Much analysis has attempted to find an empirical link between Environmental, Social & Governance (ESG) factors and investment returns. By contrast, the focus of our research has been the significance of ESG factors for equity valuations….

Regional and Sector Strategy: Monthly Update

In this Executive Summary, we introduce the inaugural edition of a regular monthly update of our regional and sector strategy models, both of which explicitly take into account Environmental, Social & Governance (ESG) factors. More defensive — We extend our relatively defensive posture given more pockets of economic weakness globally. Regional strategy — We upgrade… Read more »

CCG Leases New Space at The Alliance Center

The Alliance Center of Denver

Cornerstone Capital Inc. has reached an agreement to become one of the earliest for-profit tenants at The Alliance Center in Denver and will participate in the building’s Grand Reopening festivities on Aug. 14th. The space will accommodate the firm’s new Investment Management practice. “We are pleased to have been able to find the perfect space to house… Read more »

The Cornerstone Capital Strategy Update: Less Cyclical, More Defensive

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We have updated the inputs to the Cornerstone Capital Sector Strategy Model in which we rank the ten GICs in the MSCI All Country World Index (ACWI). Figure 1 summarizes the most recent rankings. Figure 1:  Cornerstone Capital Global Markets Equity Strategy Model Sector Overview Relative to the previous rankings (published in the June edition… Read more »

Cornerstone Summary of “Earnings Guidance A White Paper from KKS Advisors & the Generation Foundation”

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The fact of the matter is that capital markets have moved away from a long-term mindset and more towards a focus on short-term results. This trend has been well observed by market participants and academics alike, yet the question as to what will serve as a catalyst to reverse the trend remains. To this end, it’s worth highlighting a recently released white paper by The Generation Foundation and KKS Advisors focusing on the impact of regular Earnings Guidance. Thorough examination of the topic leads to the following conclusions….

What is Shareholder Engagement… Why is it Important?

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The article by Susan Baker and Jonas Kron provides a fascinating example of how Trillium Asset Management has used its influence as an investor to impact corporate policies on an important social issue. But is Trillium’s story an outlier or part of a trend? Do companies change their governance practices in response to input from shareholders? If so, why? And more importantly, does it benefit the bottom line?

Confirmation Bias in the Investment Process

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The ancient Greek historian, Thucydides, wrote, “It is a habit of mankind . . . to use sovereign reason to thrust aside what they do not fancy.” The phenomenon to which he speaks manifests itself in all walks of life, from politics to religion and investing. Today, this concept is termed “confirmation bias” and refers to the tendency of people to favor information that confirms their beliefs or hypotheses….

How Purpose-Driven Programs Can Solve the Employee Engagement Problem

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The ripple effect of Gallup’s recent research on the State of the Workplace continues to widen. Their report basically indicted companies globally for their inattention to criticality of an engaged and motivated employee base. Based on their research, only 13% of employees worldwide are actively engaged in their work. For the U.S. alone, they assert,… Read more »

Open Hiring: A Culture of Training and Learning

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Greyston celebrated its 32nd Anniversary this year and we are extremely proud of our heritage as a pioneering social enterprise. Over these past thirty-two years the concepts of social entrepreneurship, conscious capitalism and environmental sustainability have become common terminology in many business and political circles. What has not changed is the inability for individuals with… Read more »

A Look at the Reynolds/Lorillard Deal: Ramifications for E-Cigarettes

Transaction Overview Reynolds American (ticker: RAI) announced an agreement to acquire Lorillard (LO) for $27.4 billion in a cash-and-stock transaction valued at $68.88 per LO’s share (based on RAI’s closing price on 7/14/14).  As noted by Reynolds, this price represents a premium of about 40% to Lorillard’s stock price on February 28, 2014, which was… Read more »

The Cornerstone Capital Strategy Update

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In the April edition of The Cornerstone Journal of Sustainable Finance & Banking we introduced the Cornerstone Capital Regional Strategy Model in which we ranked seven of the world’s regions/major economies. At the time, we excluded Australia and Canada but, following client feedback, we are now incorporating those two countries in our model – Australia as a stand-alone country, and Canada as part of the North America region….

The Cornerstone Capital Sector Strategy: Incorporating ESG Factors into Media Sector Valuations

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Cornerstone Capital’s sector strategy model is overweight on the MSCI ACWI Consumer Discretionary Index, which contains a number of global media industries including Cable & Satellite (9% of the index’s market cap, the second largest weight after Auto Manufacturers), Movies and Entertainment (7% weight, fourth-largest in the index), and Casinos & Gaming (4% weight, tenth… Read more »

Principles of Responsible Gaming

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A Chinese proverb says, “If you must play, decide upon three things at the start: the rules of the game, the stakes, and the quitting time.” Unfortunately, in not heeding this advice, some casual gamblers find themselves grappling with gambling addiction. Partly because of the well-documented adverse effects of compulsive gambling, a subset of ethics-based investors exclude gaming companies, along with other “sin stocks,” from their investment universe…

Fantasy Sports – Business Versus Social Implications

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  Fantasy sports is big business. A fanatic fan base and highly desirable demographic has turned it into a $3 billion industry in just the U.S. and Canada, growing over 12% annually.  The fantasy sports phenomenon caught fire with the advent… Read more »

Sports Analytics for the Masses

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  Professional tennis players now sparring on Centre Court at Wimbledon have likely scrutinized every part of their game – from stance, to serving strength to baseline maneuvers — with a team of coaches at the ready. But what of the… Read more »

Governance & the NFL

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ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION. In sports, fixing the game is the ultimate sin, and all sports leagues work hard to prevent contests from being decided by anything other than the skill and the effort of the players and coaches. No sport survives for long if it does not make the delight of its fans its central purpose…

Feeding Fans Sustainably

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  When we think about sustainability in the context of the fan experience we take a holistic view of our opportunity and responsibility – from the restaurants supporting the sports events to the ingredients provided by our supply chain.  In doing… Read more »

The Power of Sports: From the Field to the Business World

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  As you bring your daughter to her sports clinics this weekend, to Tae Kwon Do or swimming or soccer, or wherever else her passion lies, celebrate. She’s not just playing. She’s not just exercising. She’s actually building critical life skills, such… Read more »

The Spin on Spin-Offs

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  Time Warner Inc. completed the spin-off of Time Inc. earlier this month. Likewise, CBS Corp. announced that it would split off its remaining shares in CBS Outdoor Americas Inc. It’s clear that tax-free spin-offs continue to be popular transactions for… Read more »

More Than a Game: Football Fans & Nationalism

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  It is conclusively clear from this discussion that football is an example of the interaction between the local and the global in regards to both to the globalization of the sport and to the impact that the game’s globalizing has… Read more »

Let’s Dance: The Virtuous Cycle of Creativity

Past And Present Of Media

Mom and Dad would be proud. It only took 24 years from when I received my Bachelor of Music degree to locate the convergence between fine arts and sustainable finance. Sustainable practices in entertainment and media are perhaps not as obviously critical as they might be in extractive industries, food services, or manufacturing. What is… Read more »

Par for the Course?

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The modern game of golf has come a long way from its humble beginnings in 15th-century Scotland, and its fans are some of the most ardent of any sport. Ironically, it is golf’s deep-rooted traditions that have left it struggling to adapt to structural shifts, and the industry is now facing declining interest in many… Read more »

Regional Strategy Update

  In the April edition of The Cornerstone Journal of Sustainable Finance & Banking we introduced the Cornerstone Capital Regional Strategy Model in which we ranked seven of the world’s regions/major economies. At the time, we excluded Australia and Canada but, following client feedback, we are now incorporating those two countries in our model –… Read more »

Good Governance: A Cornerstone of Entrepreneurism

“Corporate Governance.” Perhaps the term seems out of place in a journal devoted to entrepreneurship? Entrepreneurship, whether found in a start-up or an established company, implies innovation, strategy and corporate renewal. Corporate Governance, by contrast, is seen as a “soft” form of corporate regulation that restricts and perhaps confines management. Moreover, decades of studies of different corporate governance approaches have not produced a consensus on whether and how corporate governance matters for corporate performance….

Introducing Cornerstone Capital Global Sector Strategy

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In this note, we introduce the Cornerstone Capital Global Sector Strategy Model.  The model ranks the 10 GICS in the MSCI All Country World Index.  As discussed in detail below, the model employs a quantitative multi-factor methodology to generate sector recommendations based on proprietary measures of valuation and earnings.  The Cornerstone Capital model also takes… Read more »

Financial Impediments to Job Creation by Start-Ups and Small Firms

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ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION While older firms are important with regard to employment levels, it is new and young businesses (i.e., less than one year old) that are a key source of job growth. The U.S. economy is comprised of more than 6 million establishments with… Read more »

The Cornerstone Capital Regional Strategy Update

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION In the April edition of The Cornerstone Journal of Sustainable Finance & Banking we introduced the Cornerstone Capital Regional Strategy Model. This month there is no change in our regional weightings. We provide a quick update by region. Michael Geraghty is the… Read more »

Why Compliance Programs Work Like Pushing a Rope… How Leaders Can Impact Behaviour

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. Few ingredients are as important to building a successful organization as culture and most CEOs will argue that integrity is one of the cornerstones. But how do CEOs foster an entrepreneurial spirit and ambitious drive to perform without compromising ethical standards? In… Read more »

“I Bought the Farm!”

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION Whether it was it for the NYS Department of Environmental Conservation or the Open Space Institute, I had been buying and selling land to preserve it in perpetuity for historic preservation, habitat protection and recreational use. The work was non-adversarial, amply funded… Read more »

Follow the Leader, Follow the Money…Sustainable Entrepreneurship in Banking – The Equator Principles

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION While images of Richard Branson or Elon Musk may come to mind upon hearing the term “social entrepreneur,” one does not require a huge public presence, a revolutionary new idea, or even billions of dollars to make a positive impact in meeting… Read more »

Making the Case for Crowdfunding Rules

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. Start-up companies and investors eagerly await SEC final rules implementing the JOBS Act’s crowdfunding provisions. The SEC, however, must ensure investors are adequately protected. Achieving this goal will help validate crowdfunding as a viable investment and capital raising tool. Janet Pegg, CPA,… Read more »

Introducing Cornerstone Capital Global Sector Strategy

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION We introduce the Cornerstone Capital Global Sector Strategy Model which ranks the 10 GICS in the MSCI All Country World Index. The model employs a quantitative multi-factor methodology to generate sector recommendations based on proprietary measures of valuation and earnings and incorporates… Read more »

Alibaba’s Hybrid Corporate Governance Structure

The upcoming IPO has attracted media and market attention as one of the first efforts by a Chinese company to list on a U.S. Exchange. Founded 15 years ago, Alibaba is a giant in China’s e-commerce business, with online shopping sites combining the power of an Amazon and eBay with the ubiquity of a PayPal…. Read more »

Smoke & Mirrors: The E-Cigarette Conference Call Highlights

Recent announcements by the Food and Drug Administration to regulate e-cigarettes are significant for the future of the $1.2 billion industry, not just because of the material impact of future regulations, but also because of the impact of the public debate and media discourse on the topic.  The FDA’s focus is on banning sales to… Read more »

Introducing Cornerstone Capital Global Markets Regional Equity Strategy Model

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In this note, we introduce the Cornerstone Capital Global Markets Regional Equity Strategy Model.  As discussed in detail below, the model employs a quantitative multi-factor methodology to generate regional recommendations based on proprietary measures of valuation and earnings.  The Cornerstone Capital model also takes into account corporate governance metrics by region.  We will be updating… Read more »

Smart Grid Infrastructure – Status, Opportunities and Risks

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As we strive towards a system change, replacing linear business models with circular, impact-integrating strategies, network infrastructures are at the core of a major shift. From low-risk, low-return physical assets, they are being transformed into smart grids….

Building Sustainable Cities with New Design Processes and Open Data

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. New data and technology advancements in the infrastructure design industry have the potential to revolutionize how finance and banking professionals screen opportunities for impact investments. The design industry is rapidly moving from the practice of drawing lines and circles to an intelligent,… Read more »

Cornerstone Roundtable Discussion on the Global Pharmaceuticals Industry

The “Biopharma” Industry The lines between the “pharmaceuticals” and “biotechnology” sectors are becoming increasingly blurred. With 35-40% of the earnings of global large cap pharmaceuticals companies coming from biologics, it is probably more accurate to refer to these companies as operating in the “biopharma” industry. Corporate governance has played a key role in the emergence… Read more »

Filling the Infrastructure Data Gap in Impact Investing

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. The OECD estimates USD 53 trillion in investment or the equivalent of an annual 2.5% of global GDP by the year 2030, to meet demand for infrastructure investment by 2030. Those numbers are so large and intimidating that most people are tempted… Read more »

New Tools, New Tricks: How Emerging Applications Are Becoming Game-Changers for Impact Investors and Infrastructure Development

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. The creation of standardized economic tools that can be used in the context of infrastructure exchanges may enable a new era of impact investing. Investors can use new standardized metrics to shape the definitions of new asset classes, including green bonds and… Read more »

Maersk: Sustainability as a Driver for Growth

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. It is our experience that sustainability adds value if it is tied closely into business and is allowed to help the company take a longer term perspective on material matters. At its core, it adds value through better risk management whether it… Read more »

Trinity River Vision Authority Applies Sustainability Rating and Business Case Analysis to Set Stormwater Management Principles

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. The financial benefits coupled with the benefits of maintaining the water quality of the lake and canals planned for Panther Island makes a clear case for expanding the use of green infrastructure in North Texas that will benefit the development community and… Read more »

WCX Finalizes Project Principles and Standards

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. On January 2nd, the West Coast Infrastructure Exchange (WCX) released the final version of “Infrastructure Project Certification –Principles and Framework” which was developed by the WCX Business Standards Committee. The principles and project standards are the first-ever attempt by multiple US states… Read more »

Transportation Facilities Focus on Sustainability at Billion Dollar Scale

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. When we commute and travel, do we think about the long-term sustainability of the facilities we use? Does it matter that these buildings are efficient and provide healthy environments? Up until now, we have considered multi-modal transit facilities as positive infrastructure since… Read more »

Social Stock Exchanges: Democratizing Impact Investing

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. While impact investing is still far from being an accessible opportunity for the general population, investor demand for greater liquidity and platforms such as Kiva and Kickstarter make it clear that the potential for involving retail investors in the sector is immense…. Read more »

Lack of R&D Tax Credit Will Complicate First Quarter Earnings

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. Investors should be aware that first quarter earnings could have a little extra “noise” in them this year, and may not be comparable to previous years.  The problem results from Congress not extending the R&D tax credit again.  The credit has a… Read more »

Design to Serve the Changing Needs of the Reasonable Investor

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. The reasonable investor of 2014 is not the same as the reasonable investor of 1973. However, investors don’t have information to determine how companies are adapting to this new reality. In this situation, investors need comparable environmental, social, and governance (ESG) data… Read more »

Accounting for Timber – Lack of Convergence Illustrates the Differences between Historical Cost & Fair Value Accounting

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. Over the past few years one of the dominant hot topics in investment analysis has been fair value accounting.  After the credit crisis, there was a call by some to require fair value accounting for financial instruments.  The issue of the appropriateness… Read more »

Sunshine in the Garden State: An Unlikely Leader in Solar Energy

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. In the U.S., domestic developments have made New Jersey the third leading state in solar energy. This reflects a changing energy landscape in which sustainability has become a global policy consideration. The long-term trend is towards the adoption of renewable energy… Read more »

Disclosure Overload: Don’t Throw Investors Out with the Bathwater

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Janet Pegg, Head of Accounting & Valuation at Cornerstone Capital Inc. and former Managing Director and Analyst of U.S. Accounting Research at UBS Investment Bank. Janet is an II-ranked Analyst. Subscribers can view the full article in the January edition. Although mandates… Read more »

Big Data in the Social Sector

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Sonal Shah, a Senior Fellow at the Case Foundation and a Fellow at the Institute of Politics at Harvard University and Hollie Russon Gilman, a Democracy Fellow at Ash Center for Democratic Governance and Innovation, Harvard Kennedy School. Subscribers can view the… Read more »

The Value of a Sustainable Brand

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Michelle Greene, Senior Vice President and Head of Corporate Responsibility, NYSE Euronext. Subscribers can view the full article in the January edition. For b-to-b enterprises, sustainable brand value may not be as readily apparent. The most obvious application may be in serving those… Read more »