Join Bob Huebscher on Advisor Perspective Podcast as he talks with Kristof Gleich of Harbor Capital Advisors and David van Adelsberg from Irrational Capital about leveraging human capital in investments.

We talked to Irrational Capital’s Chief Investment Officer Scott Colson ahead of the new year to discuss the Human Capital Factor® and the opportunities it may present for investors in 2024 and beyond.

The majority of corporate value increasingly resides in intangible assets. In our view, human capital is without doubt one of the most critical of these assets, encompassing the habits, knowledge, talent, motivation, and experiences of an organization.

Social measures such as corporate culture tend to be under-represented in sustainable investing. While human capital is difficult to measure quantitatively, the Harbor Corporate Culture ETF (HAPI) and the Harbor Corporate Culture Leaders ETF (HAPY) are built around the “Human Capital Factor”, a distinctive investment factor developed by Irrational Capital.

The regime change will mean that markets remain more complex and challenged than they have in the past decade, and security selection will continue to play a much bigger role in generating returns.