Does Social Responsibility Hurt a Company's Bottom Line? For better returns, should you invest in businesses engaged in social responsibility, or those on the opposite end of the spectrum?
By Rob Reuteman •
Opinions expressed by Entrepreneur contributors are their own.
On Dec. 14, 2012, when Gerry Sullivan learned that a deranged killer had gunned down 26 people at Sandy Hook Elementary School in Connecticut, he looked into positioning his mutual fund in Smith & Wesson stock.
Shares of the gunmaker would plunge in the wake of the massacre, he reasoned. Then they'd slowly rebound as Congress ignored calls for stricter gun controls.
Using a Bloomberg terminal at his office in Summit, N.J., Sullivan watched the stock plunge from $9.54 on Dec. 13 to $7.74 on Dec. 18. That's when he pounced, initiating a position in Smith & Wesson in the $316.9 million Vice Fund (VICEX) he has managed since 2011.
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