Marshall Wace is planning to raise $1 billion (£801 million) for a new fund which will invest based on environmental and other ethical criteria, a source familiar with the matter told Reuters.
The hedge fund, co-founded by British financier Paul Marshall, will rely on external analysts who focus on environmental, social and governance (ESG) issues, the source said on Saturday.
The fund will bet against stocks with poor ratings and will buy stocks with strong ESG characteristics, the source added, confirming an earlier Financial Times report.
Marshall Wace, which has a total of around $45 billion in assets, will include the new fund in its $19 billion computer-driven TOPS trading system, the source told Reuters.
This system analyses 'buy' or 'sell' recommendations from about a thousand analysts at banks and research houses to come up with trading signals.
Founded in 1997, Marshall Wace employs more than 240 people in London, New York and Hong Kong.