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Title

Selling Fast and Buying Slow: Heuristic and Trading Performance of Institutional Investors

Event Description

CFA Japan Seminar Announcement】 

Title: Selling Fast and Buying Slow: Heuristic and Trading Performance of Institutional Investors

Date: November 26th (Tuesday), 2019, 18:30-20:00
Venue: Conference A, Otemachi Place Conference Center, 1st Floor, Otemachi Place, 2-3-1 Otemachi, Chiyoda-ku, Tokyo
https://conference.otemachi-place.jp/access.html
※Please note the seminar venue is NOT FINE TOKYO at this time. Otemachi Place is 1 minute walk from A5 Exit of Otemachi Station of Tokyo Metro Subway.
*Otemachi Place is a new building that is 1 minute walk to cross the street from FINE TOKYO.
Language: English
Specialty Focus Areas: Investment Management Strategy,  Behavioral Finance(CE credit eligible)
Speaker: Mr. Rick Di Mascio (Special Advisor, Universities Superannuation Scheme)
Fee: CFA Japan Members, CFA Members of other societies, Associate Members, Professional Members:Free,
Candidate Non Members: JPY 2,000 
Non-members: JPY 3,000

 (※Global Passport Program is available.)
 

Outline

Most research on heuristics and biases in financial decision-making comes from non- experts, such as retail investors who hold modest portfolios. We use a unique data set to show that financial market experts – institutional investors with portfolios averaging $573 million – exhibit costly, systematic biases. A striking finding emerges: while investors display clear skill in buying, their selling decisions underperform substantially – even relative to strategies involving no skill such as random selling. We present evidence for limited attention as the driver of this discrepancy, with investors devoting more attentional resources to buy decisions than sell decisions. A salience heuristic explains much of the underperformance in selling: investors are prone to sell assets with extreme returns across all specifications. This strategy is a mistake, resulting in substantial losses relative to randomly selling assets to raise the same amount of money. In contrast to selling decisions, the salience heuristic does not appear to drive buying decisions, which are not affected by prior returns.

Note:  The paper is in the top 1000 downloads in any social science discipline on the entire SSRN site.  A remarkable validation given that the paper was only published less than 6 months ago.
 

Speaker

Rick Di Mascio joined the British Coal Pension Fund in September 1979 which at that time accounted for 1% of the UK stock market. Over the next decade, he held positions at the Abu Dhabi Investment Authority in London and later joined a boutique investment advisory known as MIM which eventually became Invesco.
Rick was invited back to the British Coal Pension Fund, where he held the joint roles of CIO and CEO. In this capacity, Rick managed the investment portfolio and a team of 26 investment professionals while working closely with the Trustees, including the Mineworkers and Government. At that time, the scheme became one of the earliest adopters of a strategy that later became known as LDI.
Prior to launching Inalytics in 1998, Rick also held positions at Goldman Sachs Asset Management, where he was the co-head of the UK business unit and then launched and managed risk at one of the early European Long / Short funds, Olympus Capital.
In 1998, Rick launched Inalytics with the idea that the Fund Management industry would come to need objective empirical measures of how they generate alpha. As a private business Inalytics strives to have close working relationships with its Clients, which include over fifty of the World's largest and smallest Fund Managers, Sovereign Wealth Funds and Pension Funds, and Investment Consultants.
Rick is currently a Special Advisor to the Universities Superannuation Scheme, one of the largest principal private pension schemes for universities and other higher education institutions in the UK and has recently completed, with his Co-Authors at The London Business School and Columbia University, a paper investigating the relationship between holding periods and alpha.
 

Event Type

Society

Education Topic

Behavioral Finance

Start Time

2019/11/26 18:30

End Time

2019/11/26 20:00

City

Tokyo

State/Province

 

Event Country

 

Event Region

Asia Pacific

Location Info

Venue: Conference A, Otemachi Place Conference Center, 1st Floor, Otemachi Place, 2-3-1 Otemachi, Chiyoda-ku, Tokyo
https://conference.otemachi-place.jp/access.html
Please note the seminar venue is NOT FINE TOKYO at this time. Otemachi Place is 1 minute walk from A5 Exit of Otemachi Station of Tokyo Metro Subway.
*Otemachi Place is a new building that is 1 minute walk to cross the street from FINE TOKYO.

Speaker

 Mr. Rick Di Mascio (Special Advisor, Universities Superannuation Scheme)

CE Credits

1.5

SER Credit

0

Currency

yen

Member Price

0

Non-Member Price

3000

Candidate Price

2000

Registration

If you wish to attend this seminar, please register via website.
https://cfainstitute.force.com/eventapi__router?event=a1O3Z000003aNuG&site=a0Wj000000Dv6cB

All Day Event

 

Recurrence

 

End

2019/11/26 20:00

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Event Short Info

 

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Attachments

Content Type: MyCFA Calendar
Created at 2019/10/24 14:40 by shiozawa@cfaj.org
Last modified at 2019/10/24 14:40 by shiozawa@cfaj.org