This case study illustrates how Essentia Insight’s behavioral reporting and intelligent nudges enabled a fund manager to tackle cognitive bias, improve fund performance, and generate a 20x return on his initial $50k software investment.
Active managers need to start incorporating the lessons of behavioural science if they have a chance of reversing the flow of assets into passive investment vehicles. In this paper, Eric Rovick highlights some of the areas of cognitive risk evident in active investment management and provides a managerial and operational framework for addressing them.
We’re also interested in learning from how behavioral science is applied in other sectors.
In this paper, David Taudevin – a former RAF fighter pilot – provides a fascinating insight into the psychological pressures faced by military aviators. He also examines some of the behavioral and human factor initiatives being employed to optimize the flying and combat performance of today’s fast jet pilots.
Whether you’re already acquainted with the principles of behavioral finance, or this is your first exposure to the topic, this white paper provides a practical reference guide to some of the behavioral biases most humans exhibit, but with a focus on those that will resonate with professional investors.
The team at Essentia have curated a list of the best reads on behavioral science and its application to finance and investment management. We’re constantly updating this list – if there are any titles you think should be here, please let us know. Happy reading!
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