Insight Basic: Assess and Compare Your Overall Decision-Making Skill
Portfolio managers and investment teams subscribed to Essentia’s entry-level tier, Insight Basic, can compare their Behavioral Alpha Score with peers at minimal cost.
The Behavioral Alpha Score is the key output of Essentia’s Behavioral Alpha® Benchmark methodology: a comprehensive measure of investor decision-making skill derived from daily equity and ETF holdings data. It reflects seven key types of decision-making: stock picking, entry timing, sizing, scaling in, size adjusting, scaling out and exit timing.
Insight Basic users can see the identities of all managers who have agreed to be identified and compare them with peers (identified and not) based on geography, market cap and style. Most managers with a Behavioral Alpha Score above 50 (i.e., have demonstrated material skill) are identified.
By focusing on your demonstrated skill rather than past return performance, Insight Basic enables much richer and more productive conversations with allocators of capital. Be among the first managers to appear in this groundbreaking assessment tool — and qualify to earn a ranked position in the Behavioral Alpha Benchmark — at a substantial first-year discount.
Each portfolio manager’s Behavioral Alpha Score is calculated using their overall decision hit rate (percentage of decisions that added value) and decision payoff ratio (ratio of value added by the average good decision to the value destroyed by the average bad decision).