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.
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.
The coronavirus pandemic poses new challenges to the way we manage ourselves and perform. We talk to seven top investment coaches about how to keep making good portfolio decisions in a disruptive and turbulent environment.
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.
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.
Fund managers need to think outside the machine learning "black box" if they want to get the most from this powerful advance in analytical capability. Market data is simply too complex and noisy for the kind of predictive big data being used in other sectors.
Former PM and buy-side thought leader, Jason A. Voss, considers how the industry will evolve over the next 7-10 years, and the change that's needed to develop a new breed of successful active manager.
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.
Incorporating behavioral science into your investment process doesn't have to be difficult. We present five simple techniques to reinforce the scientific rigor of your investment decision-making routine.
