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 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.
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.
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 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.
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.
Essentia CEO Clare Flynn Levy talks to former top-20 online poker player (and Behavioral Alpha Poker Night host) Chris Sparks about the lessons investment professionals can learn from elite-level poker.
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.
We have long suspected that alpha, a key measure of an investment manager's added value, has a finite life span and often tends to decay over time. Our new research proves it, bringing new insights into the nature of alpha and how portfolio managers can act to sustain it.
