Behavioral Alpha
topic on 1 show · 4 statements across 2 episodes
4 statements about Behavioral Alpha, every show
Evaluating managers requires probing emotional reactions during market shocks
“That gives me a really good data point of how the behavioral alpha of that person is. How emotional were they during there? How much did they know their space and know what was in them? That's kind of what you want to identify how good someone is. If you don't…”
Portfolio managers must verbalize strategies to generate behavioral alpha
“For human beings to be able to be more flexible and have behavioral alpha, they need to verbalize things. So one of the things that makes them more aware and more comfortable with this risk is just verbalizing it to someone.”
Behavioral alpha is the primary differentiator as fundamental inefficiencies disappear
“Behavioral alpha, the ability of getting out of stuff at the right time and sizing up at the right time, admitting that you made a mistake and folding your hand and moving on to the next one, those are not easy decisions for people to make, and I think histori…”
Flynn Levy: Managers who capture behavioral alpha will survive industry headwinds
“A lot of active managers will leave because it is getting so much harder to have a competitive advantage. But the ones who have behavioral alpha advantage, you know, where they actually are looking at their own behavior and saying, I want to continuously impro…”