There's a lot of natural interest in behavioural finance as a topic, not least because it recognises that investors are human beings and subject to the same biases and emotions as the rest of us. However, there are still questions as to its relevance and whether we can learn from it.
This largely arises because the academic literature tends to be thinly supported by evidence based on professional fund managers and the language can almost be ‘finger-pointing’, which is clearly off-putting to some.
Inalytics tackles these issues head on by testing some well-known biases against 945 institutional portfolios to see if they actually exist in practice and their impact on returns. To add some balance to the debate, the research also highlights some positive behaviours that add value.
This research, which will be presented at our webinar on 10 December 2024 at 4pm BST/ 11am ET, builds on the Selling Fast, Buying Slow’ paper that Rick Di Mascio is a Co-Author on, and it is the first time that a range of biases are tested against nearly 1,000 institutional portfolios.
This webinar qualifies for up to 1 PL credit. CFA Institute members and charterholders may self-report earned credits in the online PL tracker.