Many companies that have traditionally been considered as exclusively ethical investment stocks are increasingly turning up in the conventional portfolios of fund managers.
Mainstream investors are being drawn to companies from such sectors as alternative energy and bio foods by the strong performance of these stocks, which has been driven by soaring conventional energy resource prices, growing consumer demand and soaring market capitalizations.
The wider interest has helped share prices in these companies but “ethical” investors, who often prefer the terms “socially responsible” or “sustainable” for their investment styles, complain that the attention is stretching valuations and squeezing their allocations to primary and secondary offerings.
“Government policy changes and...
