"Armed with the ability to predict when investors are most likely to err in their judgment, we design processes that alter the very environment in which their decisions are made."
There is a common misperception about the business of trading and investment management. Many people, including seasoned professionals, are under the impression that returns are merely a function of three things: gathering information, forming views and expressing them. It explains why 90% or more of an investment manager’s time and effort is spent focused on these aspects of the job, and why allocators obsess over them when assessing managers.
What many fail to appreciate is that investment management is the business of decision making. Your results are a function of your ability to make good decisions, consistently. Due to the continuous and compounding nature of decisions, even a marginal improvement in the decision making process can have a huge impact on your results (see Novak Djokovic stats below). Therefore, the goal is to nudge the odds of a successful decision in your favor, each and every time. Luckily, we have a wealth of valuable research in the field of decision theory to draw upon in our efforts to enhance performance. Unfortunately, few do.
Interestingly, the field of study known as Decision Theory is broken down into three distinct disciplines.
We work with traders and portfolio managers to improve all aspects of their decision making process, including information gathering, view formation, position planning, structuring, sizing, management, and accounting, both individually and as a portfolio, risk derivation, monitoring, management and communication, and many others that are typically overlooked when analyzing performance.
If you are like Novak Djokovic, in that you are at the top of your game, but know you can improve with the help of the right coach, let Bija enhance your performance.
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