On Decision Attribution and Déjà Vu
When the market tide goes out, investment managers must rely on true investment skill, rather than general buoyancy, to keep them afloat. The question is (and has always been) how.
The Power of Payoff
Payoff: The investment skill metric that separates the best investors from the rest.
The Behavioral Alpha Benchmark and the Active-Passive Debate
Active managers are still very much at play in today’s market, and recent findings show that the skilled ones can outperform their indexes.
Introducing the Behavioral Alpha Benchmark
It’s time to consider the quality of a portfolio manager’s decisions — not just near-term performance.
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.
Managing Your Mental Game in a Volatile Market
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.
Long Term Doesn’t Mean Forever
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.
Mess With Your Process, Not Your Philosophy
“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.
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.
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.