Black eye for socially responsible investing

Pax World Management was once a shining example of how socially responsible investing could work. Between 2001 and 2006, it generated returns of more than 14 percent while it stuck to its principles: no stocks of companies with links to weapons, alcohol, bad labor practices and gambling. Now comes news from the New York Post that two Pax funds held up to 8 percent of their portfolios in sin stocks. Gads! The SEC, which has slapped Pax with a fine, said Pax traders would regularly ignore the firm's in-house warnings and hold banned stocks for as long as six months. These employees are no longer with the company apparently. This is a bit like a vegetarian finding out that the veggie chili he's been enjoying for years had been laced with Spam bits. Makes you want to spit--and maybe even sue.   

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