biases

Unintentional

Optimism: Good For business, bad for portfolios

Thanks to the rise of behavioural finance, funds managers are generally aware of the innate human biases which influence decisions. Whether they can adjust for them is another question. Now, with economists involved in the study and measurement of happiness, the role of optimism is being analysed at both the organisational and individual level. STEPHEN […]
Unintentional

Optimism: Good For business, bad for portfolios

Thanks to the rise of behavioural finance, funds managers are generally aware of the innate human biases which influence decisions. Whether they can adjust for them is another question. Now, with economists involved in the study and measurement of happiness, the role of optimism is being analysed at both the organisational and individual level. STEPHEN […]
Opinion

How restrictions on managers lead to lower alpha and style biases

There may be a shift to relaxing constraints on investment managers, through rising use of absolute returns funds and global tactical asset allocation, but for the bulk of assets under management constraints remain. A recent paper by Charles Jacklin, president of Mellon Capital, shows how constraints on managers lead to inefficient investment outcomes.
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