Oasis Management Company Ltd. and its affiliates and group companies (together, “Oasis”) takes its responsibilities and fiduciary duties as an institutional investor seriously. When assessing a new or current investment, we provide a complete picture by taking into account a significant amount of information from various sources which allows us to understand material risks of an investee company.
We believe that good corporate governance (“G”) adds value to an investee company, primarily relating to the company’s board of directors, in terms of:
Quality boards understand a company’s exposure to environmental (“E”) and social (“S”) issues and the importance of these issues. Accordingly, we typically look at E and S issues through our G lens. We believe this approach helps us to identify potential risks in how a company generates its returns.
We approach identified ESG risk exposures in a number of ways, including, but not limited to:
We believe that our approach is crucial to building lasting value and an appropriate level of risk-adjusted returns for our clients.
1. Investment Level
ESG integration is essential to our investment strategy. The approach is part of our investing DNA. We believe that our approach enhances our “Strategic” alpha-generating strategies. In these particular strategies, we take a “whole of company” view, which broadens the total amount of information our investment professionals consider, improving investment analysis and investment outcomes. This method includes incorporating ESG information when conducting research and due diligence on new investments, both in our active engagements with portfolio companies, and in our analysis of economic scenarios, secular trends, and industry disruptions. We also examine material ESG exposures and sustainability performance to identify sources of risk and return, among other measures.
Who Is Responsible for ESG Integration at Oasis?
The people at Oasis responsible for investment decisions are also the people responsible for integrating ESG information into the analysis that supports those decisions. Once we have initiated an investment, all teams are responsible for monitoring their investee companies on an ongoing basis. Additionally, Oasis has investment professionals dedicated exclusively to helping improve the governance and business operations of investee companies, and can mobilize an extensive network of outside resources if needed. Internal promotion and remuneration decisions take into account, among other factors, how well ESG factors have been identified, monitored, and integrated as part of the investment decision making process and the results of specific investments where there is a specific ESG focus or angle.
Oasis’s Founder and Chief Investment Officer, Seth Fischer, is a public proponent of the importance of corporate governance in long-term investing, and regularly speaks publicly about the value of investment stewardship and enhanced disclosure.
Oasis is a signatory to Investor Stewardship Codes in Hong Kong, Japan, and Korea, a member of the Asia Corporate Governance Association and the Japan Corporate Governance Network, a Sustaining Donor to the Board Director Training Institute of Japan, a signatory to the Standards Board for Alternative Investments, and a founding member of the Board Diversity HK initiative.
Oasis’s Stewardship Approach
As an investor, we are a fiduciary to our clients. We believe, and have demonstrated, that an actively engaged approach can enhance our risk-adjusted returns. Therefore, Oasis fosters active ownership and engagement related to all strategic issues, including ESG. This active engagement approach emphasizes direct and ongoing dialogue with investee companies on all governance and strategic issues that have an impact on long-term company performance. We are committed to using our voice, our vote, and all the tools available to us as actively engaged shareholders in order to help improve investee companies’ long-term value, for the success of the companies and all stakeholders.
Oasis’s stewardship and engagement priorities include, but are not limited to:
Our active engagement with investee companies often includes, among others:
Board Diversity Hong Kong Initiative
Oasis is a founding member – and proud signatory — of Board Diversity Hong Kong, an investor initiative aimed at raising awareness around board diversity issues and improving board diversity for Hong Kong’s publicly-listed companies.
We believe gender diversity on boards encourages better leadership, better corporate governance, and ultimately increases corporate performance and global competitiveness for both companies and their shareholders. While research continues to point to benefits of improving diversity on boards and in senior management, Hong Kong has continued to lag behind other major financial centers. As investors, we can contribute to improving diversity by pledging to engage with our investee companies in Hong Kong and hold them accountable on all matters related to diversity and gender representation. For more information, please see www.boarddiversityhk.org.
We are also proud to support the important missions of 100 Women in Finance, The Women’s Foundation, and the 30 Percent Club in achieving their inspiring missions.
2. Firm Level
Environment & Sustainability
Efficiency has always been at the core of our business. Oasis has a constant focus on doing more with less to reduce operating and capital expenses while minimizing our impact on the environment. Oasis is committed to reducing energy and water consumption, decreasing waste, and developing sustainable operating procedures that help us minimize the footprint of our business. We assess our impact annually to identify ways in which we can improve our contribution to the environment and reduce our footprint. Such efforts include but are not limited to:
Social and Employee Well-Being
We provide high-quality, meaningful benefits for all of our employees, including but not limited to:
Equal opportunity employment has always been, and will continue to be, a fundamental principle of Oasis. Employment is based only on personal capabilities and qualifications without discrimination related to race, color, age, gender, sexual orientation, marital status, military or veteran status, national origin, disability, religion, or any other characteristic protected by law.
This commitment against any form of bias, prejudice, harassment, or discrimination is related to recruitment, hiring, compensation, benefits, training, promotion, transfer, discipline, termination, and all other terms and conditions of employment. Oasis is committed to a work environment in which all individuals are treated with respect and dignity. Everyone has the right to work in a professional atmosphere that promotes equal opportunities and prohibits discriminatory practices, including harassment.
Oasis understands diversity to mean the concurrence of different mindsets, capabilities, cultural backgrounds, experiences and competencies, among people of different generations, sexes, backgrounds, and cultures. Oasis believes that open-minded, unprejudiced cooperation among people with such differences strengthens creativity, innovation, and dynamism and makes a company more successful.
At the firm level, Oasis monitors and annually reviews its employee representation by gender, and monitors for pay disparity by gender. We continually strive to improve.
Diversity and Inclusion are complimentary, but distinct, concepts. It has been said that diversity is the “what”, and inclusion is the “how”. Diversity focuses on the makeup of our company’s employees, and inclusion is a measure of culture that enables diversity to thrive at Oasis. Inclusion is a dynamic state of operating in which we at Oasis leverage diversity to create a fair, healthy, and high-performing organization or community. We believe that an inclusive environment ensures equitable access to resources and opportunities for all. It also enables individuals and groups to feel safe, respected, engaged, motivated, and valued, for who they are and for their contributions toward organizational and societal goals.
Philanthropy & a Culture of Giving Back
Oasis is committed to fostering a culture of giving back among employees, and organizes regular volunteer outings and charitable events.
Karen Leung Foundation
The Karen Leung Foundation was established in 2013 in memory of Oasis trader Karen Leung, who was diagnosed with metastatic cervical cancer and passed away in October 2012 at the age of 35. Before she died, Karen expressed her wish to raise awareness among Hong Kong women and girls about gynecological cancers, so that others have the information needed to prevent cancer, detect it earlier, and gain access to the best treatment options available. The Karen Leung Foundation was created in 2013 to honor Karen’s memory and her wish to save lives by reducing the impact of gynecological cancers in Hong Kong.
With this mission, the Foundation makes an impact by raising awareness about gynecological cancers, educating the local community to promote prevention and early detection, and ensuring that women in treatment have access to optimal care.
Seth Fischer is a member of the Board of Directors, and the Foundation is run out of Oasis’s offices in Hong Kong.
Sohn Hong Kong Investment Conference
The Karen Leung Foundation annually presents the Sohn Hong Kong Investment Conference, an event that brings together Asia’s leading investors to support the fight against gynecological and pediatric cancers by promoting research, education, prevention, and optimal treatment.
The Sohn Conference Hong Kong, in partnership with the globally recognized Sohn Conference Foundation, is a must-attend event in Asia providing a forum for successful professional investors to present a market view or investment idea, allowing attendees such as sell and buy-side investment professionals, asset allocators, and investors to gain valuable insights from leaders in the field. All proceeds from the conference go to support both the Sohn Conference Foundation’s and Karen Leung Foundation’s missions.
Monitoring & Implementation
Oasis reviews and updates all ESG-related processes and policies described above on an annual basis. We continually look for ways to improve, and welcome comments and feedback from our investors, employees, and other stakeholders.