Socially responsible investing (SRI) has grown tremendously popular in the past few years as more investors are putting their money where their morals are. In some cases, that means buying mutual funds that avoid tobacco and alcohol stocks, or even defense stocks.
The $1.1 billion
Calvert Social Investment Equity, managed by Daniel Boone, takes a unique approach to socially responsible investing and demonstrates that giving up so-called "sin" stocks does not mean investors have to give up solid returns. The fund has outperformed the
index annually over the past five years by an average of 3.5 percentage points.
Boone has been able to outperform the index by focusing on companies with solid earnings histories and healthy balance sheets. He also does not mind picking up former growth stocks at value prices.
I recently sat down with Boone to discuss why SRI is growing in popularity, and to dissect his methodology for choosing profitable stocks without compromising your ideals.
to watch the interview.