Turn insight into action with our simple but highly effective behavioral nudges.
Nudge engagement is highly correlated with alpha generation. (See our study.)
Essentia’s proprietary nudge engine generates personalized, automated notifications that are highly tailored to your own investment process and the criteria you find most useful.
Nudges remind you of your own investment process — at the moments that matter.
Simplicity: Nudges take no more than a minute or two, and are designed to fit seamlessly into your existing investment process.
Flexibility: Nudges don’t tell you what to do. They ask you questions — in your own voice — to help you make a deliberate decision in time to take deliberate action (or inaction) … and achieve positive results.
Results: Data analytics are an effective diagnostic tool, but you still need a way to correct the issues they reveal. Nudges fill this gap by turning insight … into continuous improvement.
On our blog: The relationship between nudges and mindfulness.
Nudges are an integral part of Essentia’s industry-leading Insight service. They serve as the hub of a feedback loop that delivers continuous improvement: decisions are made, performance is assessed, processes are optimized, and the next decision is made … more informed and better than the last one.
“Nudges help reinforce the need to take a step back and double-check that our decisions are based on sound reasoning.”
Seth Wunder, Principal & Portfolio Manager, Black-and-White Capital LP
Very little — anywhere from a few seconds to a few minutes — and how much time you spend on them is entirely up to you. You define the nudge program — what they say, when they occur, what they ask of you. We see some clients getting great results with a single yes-or-no question when a threshold is crossed, and others who have adopted a detailed “Brain Dump” nudge as a central element of their regular investment review process. We often recommend that new clients start with one or two simple nudges that take very little time; engagement is the most important thing at the outset. Then, once the benefits of this process become evident, the program can be easily expanded.
We offer a wide array of nudges, each of which can be tailored to your processes and preferences. Some nudges are delivered at a regular cadence, while others are triggered by events such as trades or stock price action. Examples include:
- Alpha Decay Nudge – alerts you to positions that may have reached their peak alpha (based on your own alpha lifecycle curve) and might warrant a renewed evaluation
- Brain Dump Nudge – gives you an easy way to build and maintain an analyzable digital investment journal
- Context Nudges – track the circumstances around your entry/exit of a given position — data that can lead to valuable behavioral insight and optimization.
In all cases, you define which nudges you receive and the criteria by which they operate.