In a world of narrowing returns, asset managers face challenges to demonstrate the value of active management, as investors migrate to cheaper passive investing solutions.
Goals and Objectives
Investment managers are leveraging analytics to measure the role of bias in suboptimal trading. By eliminating bias from the investment decision process, managers are able to provide more accurate predictions and improve recommendations, leading to higher revenue.
Advanced analytics; Machine learning algorithms applied to historical investment data; Big data to access and understand how behavioral and emotional aspects have impacted investing decisions
Use Case Summary
Debiasing methods can bring performance improvements by identifying confirmation bias in investment decisions, overconfidence bias, and anchoring bias.