INVEST | IMPROVE | IMPACT
What is the Pendragon Climate Impact Portfolio?
It is a separately managed brokerage account with investments in companies that make products or provide services that reduce carbon emissions and improve the planet’s environment. The Climate Impact strategy seeks to find ways where investors can make a positive impact on the planet through investing in the new advances and technologies associated with renewable energy, energy production, distribution and transmission and environmental science.
• Investing with Pendragon
Who should consider investing in the Climate Impact Portfolio?
Investors who want to make a positive impact on the planet and the environment through allocating a portion of their investible assets to companies that are using cutting-edge technologies that reduce greenhouse gas emissions. Due to the new technologies and the developing renewable landscape, investors should view the portfolio as a long-term investment strategy.
• A Guide to Green Investing
• The Case For Investing
What are the risks associated with investing in the Climate Strategy?
All investing involves risk. Investors can lose all or part of their principal. The overall market is volatile. While the strategy invests in predominantly established companies, the alternative energy space involves new technology and new markets. Some companies are new. Government regulation and subsidies greatly influence the alternative energy space. Government policy can change and have a dramatic impact on business models. Many of the leading companies in alternative energy are non-US firms. As such, other risks such as currency exchange rates, are present.
Who manages the account?
Pendragon Capital Management Inc. is the investment advisor for the Climate Impact Portfolio strategy. Two of its managers, Andrew Fairbanks and Ian Green are the co-mangers of the account. Combined the two have over 60 years of investment analysis and portfolio management experience. Andrew’s career in investments focused on the energy industry with equity research positions at Merrill Lynch and analyst/portfolio management roles at several energy hedge funds. Ian Green has been a Registered Investment Advisor since 1997 acting as a general investment manager with a value oriented approach to investing. Pendragon Capital Management, Inc. will have discretionary authority over buying and selling securities for the account.
MBA (Finance) Columbia University
BS (Architecture) Georgia Tech
MBA (Finance) Columbia University
BS (Accounting/Economics) Marist College
CPA, New York
In what types of companies will the managers invest?
The managers will invest in US and non-US companies that:
• Manufacture renewable energy products like windmills and solar panels
• Service and upgrade the grid and power transmission infrastructure
• Improve the energy efficiency of existing products like hot water heaters and HVAC units
• Build and manage renewable infrastructure like wind and solar farms
• Own utilities that are transitioning from fossil fuel usage to renewable energy
• Manufacture electric and hybrid automobiles and components
• Mine, process minerals and make batteries and other materials
• Produce bio-fuels and other alternative fuel technologies
• Clean up the environment, recycle and/or turn waste into energy
What type of instruments will the managers use to make these investments?
The investments can be in a variety of securities. The emphasis will be on publicly traded securities like common stock, preferred stock, and bonds. The managers can use derivatives like options to hedge, to enhance income and/or to speculate. The managers can invest in publicly traded master limited partnership units. The portfolio will also seek to “short” or “bet against” the securities of companies whose business models are threatened by advances in renewable technology. Such companies are coal and fossil fuel corporations as well as businesses in the alternative energy space where their technology is obsolete or in the process of being “leap-frogged”.
What are the fees associated with the Climate Impact Portfolio?
Pendragon Capital Management, Inc. charges a 1.5% annual management fee, paid quarterly based on the quarter-ending account value. In addition, the investor will pay other fees such as trade commissions and other ancillary brokerage or clearing firm charges.
Can the Climate Impact Portfolio strategy be held in a retirement account?
Yes, the strategy can be tailored to meet the requirements of a traditional or Roth IRA or a self-directed 401K plan.
What are the safeguards applicable to this account?
While there is no protection against market losses, the Climate Impact Portfolio exists in a brokerage account at a FINRA SIPC member securities broker-dealer. The broker-dealer employs a third-party clearing firm to hold all client assets and send trade confirmations and monthly statements to clients. Please see SIPC protections on the SIPC website (www.sipc.org). In addition, our clearing firm, Wedbush Securities, Inc. provides private insurance up to $25 million per customer to protect against fraud or bankruptcy.
Is there a minimum investment to open the Climate Impact Portfolio account?
Yes, the minimum investment is $150,000.
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