Join AthenaInvest’s C. Thomas Howard, PhD, CEO and Chief Investment Officer, and Lambert Bunker, Vice President, to explore the effect of investor behavior on the equity markets and how the Athena Global Tactical EFTs portfolio harnesses crowd behavior to enhance portfolio performance.
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.
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
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.