30 September 2013
Most investment funds that own Woodlands make their money when the trees are cut down and carted off. Ecotrust Forest Management, based in Portland, Ore., also profits from the natural habitat left untouched in the forest. The small fund harvests trees far more selectively than in traditional forestry and then picks up additional income by selling everything from carbon credits to brush undergrowth for floral arrangements.
Ecotrust’s CEO, Bettina von Hagen, believes the approach renders woods more resilient—both ecologically and financially. Since inception in late 2004 through the end of 2012, her Ecotrust Forest Fund I, with $30 million under management, notched average gross returns of 10.6% per year through December 2012, according to third-party appraisals. The fund’s fee is 1.25%.
Read more from Barron's here.