Can Traditional Active Fund Management Be Saved?
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.
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.
We've updated our popular guide to behavioral science literature, adding some exciting new titles, handy subject categories, and the pick of our team's favorite reads. Happy reading!
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.
We examined our database of real-world portfolio manager behavior and found that managers who engage with nudges, on average, significantly outperform those who do not.
Academic research by shows that mindfulness reduces cognitive bias -- people are more rational when they become aware of what they don’t know, get comfortable with uncertainty, and recognize multiple perspectives. We have observed a similar effect among our clients.
We've updated our popular guide to behavioral science literature, adding some exciting new titles, handy subject categories, and the pick of our team's favorite reads. Happy reading!