How did the Neil Woodford fund saga become so dramatic - and so destructive? Clare Flynn levy looks beyond traditional risk attribution and style-drift warning signals to explore how unchecked biases brought down this star manager.
We have long suspected that alpha, a key measure of an investment manager's added value, has a finite life span and often tends to decay over time. Our new research proves it, bringing new insights into the nature of alpha and how portfolio managers can act to sustain it.
Ahead of her keynote presentation at this year's Behavioral Alpha conference in London, we talk to Dr. Tali Sharot, Professor of Cognitive Neuroscience at UCL and best-selling author, about the factors that can make us change our minds.
How do investors cut through the huge complexity and uncertainty involved in investment decision-making? Guest blogger Joe Wiggins explores the important role played by story-telling in helping portfolio managers to organise and make sense of the information available.
Poker is a well-known training ground for many investors and traders. Here is a short but sweet collection of our favorite quotes on the relationship between playing a strong hand at the poker table and making a canny investment decision.
Poker legend Annie Duke talks to Clare Flynn Levy about the similarities between poker and investment, and why she believes that human decision-making can hold its own against the algorithms in a world of decision-making complexity.
Player psychology and process has always been important important in tennis - but never more so than at this year's US Open. Guest blogger John Quartararo explores the behavioral rituals of some well-known champions and considers what investors can learn from them.
Despite a growing recognition of behavioral alpha, it's clear there are plenty of asset allocators who are still using a traditional framework to identify skilled managers. In the following email exchange, a fund manager challenges this status quo, advocating a new approach which recognises the value of combined human and data-driven decision-making.
Asset allocator, Emmet Maguire III, reflects on how it's become harder to find differentiated equity strategies, and why he's now seeking out managers who can demonstrate they are tackling cognitive bias and finding ways to continuously improve their investment process.