Dr. Tom Howard - How Behavioral Portfolio Management Enhances Investor Performance and Decision-Making

16/09/2021 47 min Episodio 168
Dr. Tom Howard -  How Behavioral Portfolio Management Enhances Investor Performance and Decision-Making

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Episode Synopsis

Tune in to hear:- What event prompted Dr. Howard to move from using a  market efficiency / rational markets framework to a framework of behavioral finance?- How can we discover market inefficiencies that are exploitable if the price is almost always wrong and not reflecting true value?- If the behavioral dislocations of market prices are so vast, and the price is always wrong, why is the industry so bad at generating persistent returns?- It appears that the “best ideas” of active managers do out perform the benchmark, but career risk and other incentives cause them to over-diversify. Why are these “best ideas” so powerful?- When choosing a fund manager - people often approach it by asking an “easy question” such as: how much money do you manage or how long have you been doing this? Why might these not be an optimal measure of their investment proficiency?- If Dr. Howard were to design a behaviorally-informed manager due diligence process, what would it look like?- How does Dr. Howard find, select and coach his clients to ensure that they are willing to take on his rather unconventional investment approach?- Lots of different specialists throw the word behavioral around, but what they are analyzing is often very different.What are the constituent parts of what Dr. Howard would call a behavioral signal?https://www.athenainvest.comCompliance Code: 2430-OAS-9/8/2021

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