The California State Teachers’ Retirement System is committing $250 million to Impactive Capital, a new activist hedge fund that will focus on responsible, long-term investing.
Impactive was launched by Lauren Wolfe and Christian Asmar, who previously worked at Blue Harbour Group, a 15-year-old fund that built a reputation on being a collaborative activist fund. Impactive’s founders intend to take the same approach, with a positive ESG (environmental, social and governance-focused) investment strategy.
“The pendulum has swung too far toward a hyper-focus on short term results,” Wolfe said in a statement. “We take a longer-term view of our investments and improve capital allocation and ESG where it drives real value.” CalSTERS’s commitment to Impactive is small relative to its $224 billion investment portfolio, but it aligns with the state pension’s expanding capital allocation to responsible investments. Last year, CalSTERS earmarked $1 billion to invest in eight ESG-focused fund managers.