RMHI Investment Philosophy

RMHI is unique.  We focus on companies that pass both our ethical screens and have superior business models that compound value over time.

Long Term Perspective

Our Investment Criteria

RMHI manages a concentrated portfolio of approximately 20 holdings, not including bonds. The RMHI investment strategy focuses on 3 Free Cash Flow measurements plus one Technical factor. To be considered for investment, a company must have 1) consistent free cash flow growth, 2) maintain positive free cash flow margins, and 3) consistent Returns on Invested Capital (ROIC) above 15% on average. We add one technical measure of the stock’s stability relative to the S&P 500 over at least a decade or more.


Transparency and openness with our clients is a key principle. We are always open to direct communication with our clients who feel free to ask questions.

Client Assets are held at Charles Schwab & Co.

Humane Investing Does Not Have to Mean Poor Returns

Based on our years of experience with investors seeking socially responsible investing alternatives, there’s a good chance you’ve come to our website with some frustration. Many financial planners and other investment advisers will tell you that, to invest effectively, you’ll have to choose between giving up your beliefs or giving up good returns. If so, we should be a refreshing alternative for you. Neither of those concepts is accurate. Not only do we cater exclusively to ethical investing, but we also include vegan investing screens. In addition, you can see that the performance of our portfolios does not represent giving up good returns at all.

Our social screening history dates back to 1990 as a broker with A.G. Edwards and Sons in Nashua, NH. Brad Pappas was active in giving lifetime homes to dogs needing rescue. During this time, he was the first investment professional in the U.S. to create the concept of “Cruelty-Free Investing.” He did this by avoiding investments associated with animal testing. Since then, he has expanded the scope of social screening portfolios to include companies with anti-LGBTQ messaging.

Rocky Mountain Humane Investing, Corp. was founded by Brad Pappas in 1995. RMHI is the first and only investment adviser in the US that focuses exclusively on the needs of the Vegan and pro-LGBTQ investor. This approach to investing is also commonly referred to as socially responsible, environmentally friendly, sustainable, cruelty-free, or green investing, as well as Humane Investing.


Currently, we screen and eliminate the following industries:

  • Animal Testing (including Biotechnology and Pharmaceuticals)
  • Animals as Entertainment
  • Companies with significant environmental issues
  • Companies with anti-LGBTQ donations, policies or statements
  • Factory Farming
  • Weapons
  • Extractive Industries (oil and gas, mining, timber)
  • Tobacco

Rocky Mountain Humane Investing.

For over 25 years, Rocky Mountain Humane Investing has been providing clients with cruelty-free, socially responsible investment management.