Little wonder that no hedge fund headhunts from the New Zealand superannuation fund. Their staff turnover ratios are below 10% and often 5% and the CEO is paid a pittance by hedge fund standards.
… the mean excess return varies from a low of 5.3% (alcohol), through 9.6% (biotech), 10.0% (adult services), 14.7% (tobacco) and 24.6% (weapons), to a high of 26.4% (gaming).
Source: Dimson E; Marsh P; and Staunton M. “Responsible investing: does it pay to be bad?” Global investment returns yearbook. Credit Suisse Research Institute 2015.
During the transition period, 1947-1965, shares in the tobacco industry underperformed by 3 percent per year in the USA. Still, it was a temporary trend and the decades from the 1960s to the 2000s, when the health impact of tobacco was well known, saw tobacco companies outperforming comparable firms by over +3 percent per year.