For the three years ended June 30, 2026, our assessment shows a broad rebound in decision-making outcomes, although the median Behavioral Alpha score remained below the value-additive threshold.
Every investor has a name or two they’ll never own again – and it’s rarely about the fundamentals.
Our latest (three years ended March 31, 2025) Essentia Behavioral Alpha Benchmark ranking shows continued pressure across the ranked universe, even as the headline measure improved modestly.
Most institutional investors evaluate active equity managers using Brinson-Fachler attribution or Fama-French factor models -- frameworks that explain performance after the fact but say little about the decisions that produced it.
Behavioral biases and cognitive depletion conspire to make exit decisions among the weakest areas of professional investor skill. The data -- and the habits of the world's best fund managers -- show there's a better way.
Our latest (three years ended December 31, 2025) Essentia Behavioral Alpha Benchmark ranking shows a pronounced downturn in decision-making outcomes across the ranked universe.
This quarter’s results show a shift in the drivers of decision-making skill — from stock selection toward capital-allocation and timing decisions.
The question of whether quarterly earnings reporting promotes or undermines long-term value creation is back on the table. With U.S. policymakers once again considering a shift to semi-annual reporting, it’s worth asking: what would such a change really mean?
Reversing a downward trend, active equity manager decision-making added value in the three years ending 30 June 2025.
Knowing what to ask – and how to ask it – matter more than ever.
