Essentia Analytics

“The consistency with which they can get those decisions right, and the extent to which they can get the ones right really right, and the ones that get wrong only a little bit wrong, that is the key to success in fund management.”

“No matter what you're doing, for any equity investment, you're making a picking decision, you're making an entry timing decision, you're making a decision about how big to go, and how quickly to get there, and adding and trimming decisions while you're in ther…”

“What we find is that people's behavior changes, so when you do that, people do make a better decision, and it's not because we've told them what decision to make, it's because we've told them to pause and make a decision, whatever that decision is.”

“And what we find is that they are more successful than your normal trades, usually.”

“If you start thinking about things in terms of feedback loops, then failure becomes a very valuable learning experience, and it gets easier and easier to separate the emotion of failing, you know, or getting something wrong from the learning, and recognize the…”

“You often see evidence of hurting around entry timing and that sort of, people are often very good at contrarian entry timing, catching it, you know, an inflection point quite well. But when something's been moving their way for a while, Take, say, a three-mon…”

“We definitely do sometimes see the disposition effect as an extension of the loss aversion point, so not just holding on losers for too long, but cutting winners early. Less prevalence in professional fund managers than in retail investors, though.”

“I see managers, it's like I look at x-rays all day long of different managers, and I see a lot of skill. It's quite rare that I see somebody where you're like, oh god, you should really find a different occupation. Usually there's something to work with”