EPISODE · Sep 16, 2021 · 47 MIN
Dr. Tom Howard - How Behavioral Portfolio Management Enhances Investor Performance and Decision-Making
from Standard Deviations with Dr. Daniel Crosby · host Dr. Daniel Crosby, Dr. Tom Howard
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.com Compliance Code: 2430-OAS-9/8/2021
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What this episode covers
This week on Standard Deviations with Dr. Daniel Crosby, Dr. Crosby speaks with Dr. Tom Howard. Thomas Howard is the CEO and Chief Investment Officer of AthenaInvest and the architect of the unique methodology that underlies Athena’s patented behavioral investment approach. Building upon the Nobel Prize winning research of Daniel Kahneman, Tom is a pioneer in the application of Behavioral Finance to investment management and the author of the book, Behavioral Portfolio Management. Dr. Howard is a Professor Emeritus at the Reiman School of Finance, Daniels College of Business, University of Denver. As a well-known thought leader in Behavioral Finance, Tom speaks at national industry conferences and is often featured in major publications.
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Dr. Tom Howard - How Behavioral Portfolio Management Enhances Investor Performance and Decision-Making
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