What’s in a Nudge
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.
Between Mindfulness and a Nudge
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.
Our behavioral science reading list just got even better
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!
Measurably Better – A New Behavioral Analytics Case Study
Our latest case study shows how the managers of a concentrated, low turnover equity fund were able to unlock over 4% of incremental alpha per year by using Essentia’s behavioral analysis, tailored nudges and expert coaching.
Where Alpha Is Lost and Found
Alpha is the holy grail of active portfolio management but its source has always been elusive - until now. In their latest analysis, our research team break new ground by identifying the factors most commonly associated with alpha generation (and destruction) by equity fund managers.
5 Ways to Stick to Your Investment Process
In difficult market conditions, it’s critical that active investors adhere to their established investment processes. Here are five simple but effective actions that can be used to support and strengthen daily decision-making discipline.
Coronabias and the Fat Tail
In judging other people’s reaction to the coronavirus, are we in danger of displaying a new kind of “coronabias”? Philip Maymin explores this and the wider implications for investor behavior in the current crisis.
What We’re Reading – Updated!
We've updated our popular guide to behavioral science literature, The Essentia Reading List. One of our most downloaded white papers, this comprehensive list includes must-read behavioral classics and some exciting new titles.
The Half-Full Glass: Active Managers CAN Outperform Index Funds, Net of Fees
In a supplement to our Alpha Lifecycle research, we find that disciplined active managers who are able to exit positions at or near the peak of their alpha curve can preserve more than 120 bps outperformance (net of fees), per year, vs index funds.
Don’t Ride a Falling Star
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.