A growing trend within the investment industry is the direct application of behavioral finance to portfolio management. This represents a new direction, building on the industry’s current emphasis on how investors and advisors can avoid the emotional biases that destroy wealth. Its focus is on using behavioral factors as the basis for constructing an investment strategy, while at the same time avoiding the cognitive errors made by fund managers. 

Published on Proactive Advisor Magazine May 6, 2020

Applying behavioral finance concepts to fund manager behaviors has proven helpful in selecting top-performing equity funds.

Published on Proactive Advisor Magazine May 6, 2020

Is it time to move away from the efficient market hypothesis to a more realistic representation of markets? Viewing stakeholders as emotional decision-makers, rather than rational computational entities, will help in navigating a changing financial environment.

A behavioral approach to portfolio construction views the investment management process through the lens of behavior. Just as successful advisors create a reassuring behavioral client experience, investment professionals can infuse behavioral factors throughout the portfolio management process.

As published on Advisor Perspectives June 22, 2020

Is the market environment turning favorable for active equity managers? It seems a strange question to ask in the midst of a pandemic and heightened market volatility, but history tells us that it is during just such turbulent times that active managers excel. There is accumulating evidence that market conditions are growing more attractive for showcasing stock-picking skills.

Recent volatility illustrates how the markets truly are “human institutions” and shows the impact of emotional crowds. Listen in to explore the effect of investor behavior on active equity returns and discover ways to generate alpha by restructuring various aspects of investment management using behavioral factors. Learn proven techniques from manager selection, to security analysis, to portfolio management.