The article profiles hows Inalytics provides analytical feedback in order to improve decision making.
Di Mascio, who says his firm has analysed some 100 million investment decisions across more than 900 portfolios, says data shows there are common pitfalls many traders make.
“Instead of doing what they should do, which is run winners and cut losers, portfolio managers typically will cut their winners too early and hang on to losers too long,” he explains.
“The purpose is to provide the link between the decision that they take and the performance to see where the strengths and weaknesses are.”
The full text of the article is available here
Rick spoke on the challenges and opportunities of big data as part of a Professional Investor roundtable.
A copy of the discussion can be found here: Professional Investor – RDM – Big Data Roundtable
We came across some interesting research on the pitfalls of relying on memory to assess performance.
‘We focus on the few striking events that happened rather than the countless events that failed to happen’ – Daniel Kahneman Thinking, Fast and Slow
This examines the utility of human memory as an effective tool for improvement.
You can download the research article here: Research Article – Memory vs. Analytics
Our work with Shane Sutton has been featured in The Economist. The article discusses how the combination of data and coaching is helping fund managers improve their game.
PROFESSIONAL cycling is not the obvious place to look for lessons in investing. But in the past year several big British investment firms, including GLG Partners, J.O. Hambro and Schroders, have used the services of Shane Sutton, the technical director of Britain’s cycling team. Mr Sutton, they hope, will teach managers to steer clear of biased hunches and performance-sapping habits.
The full article is available here.