JUST Capital Co-Founder and Chair Paul Tudor Jones II joined Jim Cramer on CNBC’s Mad Money to discuss the JUST Index (which underpins the JUST ETF) and how being just is not just good for the world, it’s good for business.
Jones shared research that demonstrates since its construction two years ago, the JUST Index outperformed the Russell 1000 and S&P 500 by 4.1% and 3.4%, respectively, through October 26 (and for seven consecutive quarters!).
Cramer’s response? “Maybe you don’t have to be some kind of Machiavellian monster to consistently beat the market!”
Our recent research report, Looking for Strong Returns? Ask the American Public, argues 83% of the JUST Index outperformance is driven by alpha — active, excess investment return — not traditional investment factors like profitability, investment, value, size, growth, and momentum.
Companies in the Index are also driving change on the issues the American public cares about most. They produce 45% lower greenhouse gas emissions, give more than twice as much to charity, pay 94% less in EEOC fines and are twice as likely to pay workers a living wage.
“Here’s the great punchline,” Jones said. “On average, those companies earn 7% more return on equity than the ones in the bottom half – and higher ROE translates into BOOHYA! – higher prices.”
Jones wrapped up saying that “The way we’re going to change corporate behavior is: you have to stop talking about earnings and we need to start talking about justness.”
Check out the full video above, and read more about how the voice of the American public can inform better business practice and performance.