The theory of behavioral finance and cognitive science and how it applies to practical decision-making in our personal lives and within portfolio management. We also review how technology and habits can be used to mitigate or reduce the effect of unconscious bias.
When the market tide goes out, investment managers must rely on true investment skill, rather than general buoyancy, to keep them afloat. The question is (and has always been) how.
Payoff: The investment skill metric that separates the best investors from the rest.
Active managers are still very much at play in today’s market, and recent findings show that the skilled ones can outperform their indexes.
It’s time to consider the quality of a portfolio manager’s decisions — not just near-term performance.
Active managers need to start incorporating the lessons of behavioral science if they have a chance of reversing the flow of assets into passive investment vehicles.
Times like these are when it’s both most important and most difficult to make deliberate, mindful decisions. These leading investment coaches have some suggestions.
In my last blog post, I mentioned an objection we often hear from managers who are reticent about working with Essentia: “I’m afraid it will mess with my process”. This post offers a real-life example.
“I’m afraid of messing with my process. It might make me worse” - this is one of the most common objections we hear at Essentia.
The proprietary analysis we use with professional investors suggests some dark horses to watch in this year’s tournament.
We often talk about using sports-style data analytics to optimize investor behavior. We decided to apply our award-winning investment analytics to the NBA finals.
