Using the Inalytics Peer Group, through analysing over 100 million investment decisions we have made several key observations on how portfolio managers behave and generate alpha.
From running winners and cutting losers, to staying rational when underperforming and managing bad news, the key to investment success is the ability to make objective and informed decisions. Alongside trading styles, sizing and holding periods, our observations analyse select investment behaviours and why they are important.
We’ve found that it is usually only one or two of these investment behaviours which are significant to an asset manager, and when they are relevant, the effect is usually at least one or two percent per annum.
Download the full study here to learn more about how our observations can help to identify investment skill.
Contact us to learn more about how we analyse portfolios and decision making to improve the investment process and help select skilful portfolio managers.