Practical Applications of Social Finance and the Postmodern Portfolio: Theory and Practice

Social investing is still in its early stages of development, but given the expected $30 trillion wealth transfer from Baby Boomers to their heirs, this area may grow quickly in the next few decades. Investors from Generation X and the Millennials are considered likely to incorporate socially responsible investment into their portfolios, thus growing the demand for social investing products, measures and theories. Yet, methods of integrating social responsibility into modern portfolio theory (MPT) have remained largely unexplored. In an interview with Institutional Investor Journals , Lisette Cooper and Michael Lear of Athena Capital Advisors provide insights into their approaches for merging social investing with MPT. Cooper’s full research findings were published in Social Finance and the Postmodern Portfolio: Theory and Practice ,“co-written by Athena colleagues Jeremy Evnine , Jeff Finkelman , Kate Huntington , and David Lynch .