At Hudson Bay we recognize and respect the fact that this is a very important issue and have created the ability of Environmental, Social and Corporate Governance (“ESG”) sensitive organizations to invest with us. Investors that are subject to an ESG or Socially Responsible Investing (“SRI”) mandate are offered the option to acquire bespoke tranches (the “SRI Tranches”) of Hudson Bay Fund LP or Hudson Bay International Fund Ltd. (each, a “Fund”) that enable them to invest in the Fund in a manner that respects their particular ESG mandates. This is accomplished by allocating profits and losses attributable to portfolio investments that would violate their ESG mandate away from their accounts (the “Allocation Away Methodology”). In this regard, SRI Tranches are customizable based on the SRI Investor’s specific ESG mandates. For example, an SRI Investor may desire to avoid all exposure to investments in the securities of fossil fuel-related companies. In this case, profits and losses from fossil fuel investments in our portfolio will not be allocated to the SRI Investor. Details of the Allocation Away Methodology are set forth in the Funds’ Confidential Private Placement Memoranda.
As discussed above, SRI Tranches are customizable based on the SRI Investor’s specific ESG mandate. ESG factors are therefore considered based on the particular SRI Investor’s sensitivities and request. While there is no impact on portfolio design, the investment return of a particular SRI Investor’s may differ from those investors who are not SRI Investors as the applicable SRI Tranche will not be allocated certain profits and losses related to certain portfolio positions which would violate that investor’s ESG mandate. The terms of the SRI Tranches are further discussed in the Funds’ Private Placement Memoranda.
In addition, while at a firm level we do not specifically impose ESG policies on our investment professionals, many of our PMs may take ESG into account when evaluating whether to invest in a particular issuer. Understanding “G” (governance, management and shareholder incentive alignments) is an extremely important and core part of the research process for several of our PM teams. For example, within the event space, we are invested in several discount to NAV, holding company transactions within the Liberty Media complex, and corporate governance and incentive alignment with shareholders is a key factor in our evaluation and analysis of the risks, opportunities, and potential outcomes of the trade.
While “E” and “S” concerns are more situational and case by case depending on the PM, several PMs do take these factors into account when investing both from a philosophical perspective as well as from the perspective of how these factors will affect issuer performance. For example, within the TMT sector, while it’s not often that a media, telco, or Internet company would have any environmental impact, it’s certainly possible to imagine a social platform having an indirect impact, or perhaps an infrastructure or e-commerce player having a gradually increasing impact, which could raise the brow of regulators and impact stock prices. Social is an emerging consideration in the sector, as many digital platforms (social networking, e-commerce, and search) will be increasingly under scrutiny by regulators for consumer protections (pricing and privacy both come to mind). Therefore, our team takes that into account when evaluating companies.
ESG considerations are becoming an increasingly important consideration in the credit space. Issuers have started to issue “Green Bonds” where the use of proceeds is ear marked for ESG purposes. These bonds typically trade better than normal issues because they have scarcity value and because investors need them to fulfill quotas for ESG dedicated funds. As a result, our PM’s have started to incorporate whether an issue is a Green Bond into their investment process.
More broadly we have started to see investors include ESG into their investment mandates and issuer risk evaluations. Companies with poor ESG profiles may have less support from the investment community, which then becomes a headwind to their credit valuation. Therefore, all else being equal, we would rather own a company with a good ESG profile than a poor one from an investment perspective.
ESG is also an important consideration when it comes to credit quality itself – companies with negative environmental impact (i.e. oil and gas), negative social implications (i.e. tobacco), or poor governance (i.e. companies with high executive payout and poor track records) – are potentially companies that have a higher risk profile in general. It therefore becomes an important consideration as part of the broader investment/risk process.
We are very open to accommodating investor specific SRI and ESG concerns and would welcome potential investors to approach us to discuss the various options that we can provide.
By accessing or using this Hudson Bay Capital Management LP and its affiliates (collectively, "Hudson Bay") website (the "Site"), you hereby accept and agree to comply with the terms and conditions set forth in this User Agreement. This User Agreement is a binding agreement between you and Hudson Bay, and governs your access and use of the Site, which includes any text, graphics, user interfaces, information, data, tools, products, services and other content (together, "Content") available on or through the Site. You may contact Hudson Bay by e-mail at IR@hudsonbaycapital.com with questions about the terms and conditions of this User Agreement.
PLEASE READ THIS USER AGREEMENT CAREFULLY BEFORE USING THE SITE. EACH TIME YOU USE THE SITE, YOUR USE INDICATES YOUR FULL ACCEPTANCE OF AND AGREEMENT TO ABIDE BY THIS USER AGREEMENT IN ITS THEN CURRENT FORM. IF YOU DO NOT ACCEPT THE TERMS AND CONDITIONS STATED IN THIS USER AGREEMENT, DO NOT USE THE SITE.
This notice (this “Privacy Notice”) is provided by Hudson Bay Capital Management LP and its affiliates (collectively, “we”, “us”, or “HBC”), and sets forth the policies of HBC for the collection, recording, storage, use, retrieval, altering, erasing and disclosing (collectively, “processing”) and protection of personal information relating to current, prospective and former investors (collectively, “Investors”) in the investment funds and other vehicles (each, a “Fund”) advised by HBC. This Privacy Notice may be changed at any time, provided a notice of such change is given to you.
References to "you" or an "Investor" in this Privacy Notice mean any Investor who is an individual, or any individual connected with an Investor who is a legal person (each such individual, a “data subject”), as applicable.
Capitalized terms used herein but not defined herein shall have the meanings assigned to them in the Confidential Private Placement Memorandum relating to the relevant Fund, as may be supplemented, updated or modified from time to time (the “Memorandum”).
The categories of personal data we may collect include names, residential addresses or other contact details, signature, nationality, tax identification number, date of birth, place of birth, photographs, copies of identification documents, bank account details, information about assets or net worth, credit history, source of funds details or other sensitive information, such as certain special categories of data contained in the relevant materials or documents.
We may collect personal data about you through: (i) information provided directly to us by you, or another person on your behalf; and (ii) information that we obtain in relation to any transactions between you and us.
We may also receive your personal information from third parties or other sources, such as our affiliates, the administrator of the Funds (the “Administrator”), publicly accessible databases or registers, tax authorities, governmental agencies and supervisory authorities, credit agencies, fraud prevention and detection agencies, or other publicly accessible sources, such as the Internet.
We may process your personal data for the purposes of administering the relationship between you and us (including communications and reporting), including where this is necessary for the performance of a contract we have entered into with you, direct marketing of our products and services, monitoring and analyzing our activities, and complying with applicable legal or regulatory requirements (including anti-money laundering, fraud prevention, tax reporting, sanctions compliance, or responding to requests for information from supervisory authorities with competent jurisdiction over our business). Your personal data will be processed in accordance with the applicable law and may be processed with your consent, upon your instruction, or for any of the purposes set out herein, including where we or a third-party consider there to be any other lawful purpose to do so.
Where personal data is required to satisfy a statutory obligation (including compliance with applicable anti-money laundering or sanctions requirements) or a contractual requirement, failure to provide such information may result in your subscription in the applicable Fund being rejected, or compulsorily redeemed or withdrawn, as applicable. Where there is suspicion of unlawful activity, failure to provide personal data may result in the submission of a report to the relevant law enforcement agency or supervisory authority.
We may disclose information about you to our affiliates or third parties, including the Administrator, prime brokers, custodians and executing brokers, and other trading counterparties, as applicable, for our everyday business purposes, such as to facilitate transactions by the Funds, maintain your account(s), or respond to court orders and legal investigations. It may also be necessary, under anti-money laundering and similar laws, to disclose information about an Investor in order to accept subscriptions from them or to facilitate the establishment of trading relationships with executing brokers or other trading counterparties. We will also release information about you if you direct us to do so.
We may share your information with our affiliates for direct marketing purposes, such as offers of products and services to you by us or our affiliates. You may prevent this type of sharing by contacting us at +1 212-571-1244. If you are a new investor, we can begin sharing your information with our affiliates for direct marketing purposes 30 days from the date we sent this Privacy Notice. When you are no longer our investor, we may continue to share your information with our affiliates for such purposes. We may also disclose information about your transactions and experiences with us to our affiliates for their everyday business purposes.
We do not share your information with non-affiliates for them to market their own services to you.
Personal data will be retained for the duration of your investment and for a minimum period of five to seven years after a redemption or withdrawal, as applicable. We may retain personal data for a longer period, for example for the purposes of marketing our products and services or compliance with applicable law. From time to time, we may review the purpose for which personal data has been collected and decide whether to retain it or to delete if it no longer serves any purpose to us.
To protect your personal information from unauthorized access and use, we apply organizational and technical security measures in accordance with the applicable law. These measures include computer safeguards and secured files and buildings. We will notify you of any material personal data breaches affecting you in accordance with the requirements of the applicable law.
Please contact Investor Relations at +1 212-571-1244 for any questions about this Privacy Notice or requests with regards to the personal data we hold.
You may contact us at any time to limit our sharing of your personal information. If you limit sharing for an account you hold jointly with someone else, your choices will apply to everyone on your account. US state laws may give you additional rights to limit sharing.
For more specific information or requests in relation to the processing of personal data by the Administrator, prime brokers, custodians or any other service provider to the Funds, you may also contact the relevant service provider directly by visiting their websites.
Personal Data Processed in Third Countries. Your personal information will be processed in the United States, and other countries outside the UK (“Third Countries”), that may not offer the same level of data protection as that afforded by the UK’s data protection laws, including the UK General Data Protection Regulation (“GDPR”). We will process personal data (or ensure that it is processed) in such Third Countries subject to appropriate safeguards and in accordance with the requirements of applicable law, which may include having appropriate contractual undertakings in legal agreements with service providers who process personal data on our behalf in such Third Countries.
Your rights. You may have certain rights under the GDPR (or the DPA as defined below) in respect of the personal data we hold and which you may exercise. These rights are:
Please note that the right to be forgotten that applies in certain circumstances is not likely to be available in respect of the personal data we collect to satisfy our legal or regulatory obligations, as described above.
You have the right to complain to the Information Commissioner’s Office (“ICO”). Further information is available from the ICO’s website.
For the purposes of the Cayman Islands Data Protection Act (as amended) (the “DPA”) a Cayman Islands Fund is a data controller. The rights applicable to data subjects under the DPA are similar to those of the GDPR. Where personal data related to Cayman Islands fund investors is transferred outside of the Cayman Islands this must only be transferred to another country or territory that provides an adequate level of protection, and if necessary, arrangements similar to those applicable under GDPR or as provided for by the relevant competent authority in the Cayman Islands shall also be required.
We may send text files (e.g., “cookies” or other cached files) or images to your web browser to store information on your computer. Such text files and images are used for technical convenience to store information on your computer. For instance, we may use a session cookie to store form information that you have entered so that you do not have to enter such information again. We may use information stored in such text files and images to customise your experience on this website and to monitor use of this website. You may set your browser to notify you when you receive a cookie. Many web browsers also allow you to block cookies. If you block cookies you may not be able to access certain parts of this website. You can disable cookies from your computer system by following the instructions on your browser or at www.allaboutcookies.org.
You can also click on “Cookie Preferences” on our website and change your preferences as to how we use cookies.
We may record and monitor telephone conversations and electronic communications with you for the purposes of:
Copies of recordings may be stored for a period of five years, or such other longer period as we may determine from time to time.