Essentia Insight helps active equity portfolio managers measure, improve and promote their investment decision-making skill.
For over a decade, our Insight service has helped leading active equity investment and marketing teams look beyond historical returns — and the influence of luck — to identify, quantify and measurably improve decision-making skill.
At the core of Essentia Insight is our groundbreaking manager assessment tool, the Behavioral Alpha® Benchmark (EBAB), which considers the value added or destroyed by individual investment decisions. Unlike past performance, this peer-reviewed measure of decision-making skill is resistant to the random effects of luck — and it’s even linked to future relative portfolio returns.
With EBAB’s skill lens, portfolio managers unlock powerful marketing proof points and the means to continuous improvement. We’re excited to offer Essentia Insight — and its underlying EBAB assessment — to both managers and asset allocators in three distinct tiers: Basic, Pro and Advantage.
The Behavioral Alpha Benchmark compares equity managers based on decision-making skill. The dotted line represents what would be achieved by chance (unskilled decision-making). Portfolios to the right of the line have added value through their decision-making.
Essentia’s skill-based Behavioral Alpha® Benchmark assessment is published in the peer-reviewed Journal of Investing. Read more
Who Uses Essentia Insight
Active Equity/ETF Portfolio Managers &
Research Analysts
- Assess and promote your decision-making skill compared to peers
- Articulate your investment process and objectively demonstrate your skill to end investors, regardless of short-term performance
- Continuously improve your investment decisions with a data-driven feedback loop, with optional nudges and Insight Sessions
Chief Investment Officers &
Investment Oversight Teams
- Add a decision attribution lens to your performance analysis process
- Detect and address changes in manager behavior before they have a lasting impact on the portfolio
- Get better visibility into where each member of your investment team adds value and how you can unlock more
Asset Allocators &
Fund Buyers
- Incorporate a quantifiable measure of investment skill into your manager selection and review processes
- Understand how — not just where — each manager generates alpha
- Have more valuable conversations with managers by speaking their language
Insight subscribers are eligible for Essentia’s quarterly Behavioral Alpha Benchmark ranking and annual Behavioral Alpha Awards, which publicly recognize the five most-skilled managers over the previous 36 months.
Benchmark recognition offers excellent marketing and PR opportunities, including media coverage, social media promotion and exposure to hundreds of allocators through Essentia’s Behavioral Alpha webinars with the top-scoring managers.
For a firsthand perspective on Essentia Insight, watch our Behavioral Alpha webinar with Invesco’s Co-Head of European Equities Oliver Collin.
Oliver, who recently ranked in the Top 5 of the Behavioral Alpha Benchmark assessment, shares how behavioral analytics have improved his investment process and decision-making skill.
Download an overview of Insight for Portfolio Managers: