At North Growth Management, we believe that having a successful fossil fuel free portfolio means to generate superior returns without relying on the performance of pure play fossil fuel companies and by seeking out alternative energy investments.
We sold our position in Chesapeake Energy Corporation in July 2005, and we have not had any direct exposure to oil and gas producers in both the U.S. Fund and the Canadian Fund for over 10 years. Our carbon-free investment strategy has not sacrificed returns for unitholders. Without even bringing the potential long run implications for oil demand due to climate change into the discussion, we continue to believe there are better sectors to invest in for long term growth.
As we believe non-carbon based energy sources will capture the dominant share of global energy demand growth in the future, we continue to look for opportunities to invest directly in renewable energy.
Over the years, we have taken certain moral stands about our investments. In the 1970s, our founder, Rudy North (while at Phillips, Hager & North Investment Management Ltd.), stopped investing in tobacco stocks despite the debate that continues to this day over the potential for high returns in that industry. Likewise, over a decade ago, the North Growth team stopped investing in pure play fossil fuel companies for financial and moral reasons.