Flynn Levy: Disposition effect is less prevalent in professional managers than retail
Clare Flynn Levy · Clare Flynn Levy and Cameron Hight - Moneyball for Managers (Capital Allocators, EP.43) · Mar 12, 2018 · at 15:03
Clare Flynn Levy, founder and CEO of Essentia Analytics, discusses how behavioral finance biases manifest in professional portfolio managers versus retail investors.
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“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.”
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