13 min listen
Michael Falk - Emotional Intelligence as Investment Alpha
Michael Falk - Emotional Intelligence as Investment Alpha
ratings:
Length:
47 minutes
Released:
Jun 1, 2021
Format:
Podcast episode
Description
Tune in to hear:- What might the personality of an ideal hire for a leadership position in asset management look like?- How can one measure things like emotional intelligence and curiosity that can seem kind of ethereal or hard to get your arms around?- Has Michael come across any counterintuitive, or surprising, discoveries in his research as he’s tried to fill talent gaps in the financial services industry?- How does a company best walk the line between having adequate conflict, to fully vet and consider all perspectives, but not such excessive conflict that it spills over into ugliness?- What does the concept of “psychological safety” mean and how can one achieve this perspective throughout their organization?- How do we get beyond just paying lip service to wanting productive conflict in an organization and actually get to a point where we can have these conversations?- What are some common behavioral traps within decision making processes used by asset managers, and how does Michael council people to begin to overcome these?- Is there really something magical about the human touch that is additive to the investment decision making process or can we simply automate these things away?- How might we build out a more modular model that takes the best of quant, analysis and data and the best of human decision making and merges these aspects together?- What has come into focus for Michael since his ALS diagnosis?Books:https://www.amazon.com/Learn-Sustain-Long-Term-Economic-Growth/dp/1944960058https://www.amazon.com/Get-Work-Future-Michael-Falk/dp/1704375827ALS Charities: https://iamals.orghttps://lesturnerals.orgRecent Writing:https://investmentsandwealth.org/getattachment/2166018f-6fbd-4389-ad61-8352e53d7537/IWM20NovDec-EverythingYouNeedToKnowAboutInvesting.pdfhttps://www.cfainstitute.org/research/foundation/2021/capitalism-for-everyoneCompliance Code: 1740-BCI-5/27/2021
Released:
Jun 1, 2021
Format:
Podcast episode
Titles in the series (100)
The Psychology Of Investment Momentum: Momentum has existed for hundreds of years and has persisted for two decades post discovery. This sort of staying power in capital markets full of hungry arbitrageurs is always the mark of human psychology. Many experts consider momentum to not just be a factor but THE factor. Fama and French don’t mince words, “The premier market anomaly is momentum. Stocks with low returns over the past year tend to have low returns for the next few months, and stocks with high past returns tend to have high future returns.” As James O’Shaughnessy says, “of all the beliefs on Wall Street, price momentum makes efficient market theorists howl the loudest.” In a perfect world, there would be no good reason to pay more for a business today than yesterday simply because of positive price action. But this isn’t a perfect world, it’s a world ruled by human behaviour and thus exhibits all of the attendant quirks. Like peanut butter and chocolate, momentum and value by Standard Deviations with Dr. Daniel Crosby