Emotional behavior and biases run throughout financial markets. This is
the diagnosis of behavioral finance.
But it is not enough to know that investors make biased decisions. What
do we do about it? How do we move beyond diagnosis, to prescription?
In this groundbreaking new book, investing and behavioural finance
experts Thomas Howard and Jason A. Voss plug this void and show the new
way ahead for investment managers and advisors. Return of the Active
Manager provides a set of tools for investment professionals to
overcome and take advantage of behavioral biases.
Across seven compelling chapters, Return of the Active Manager details
actionable advice on topics such as behaviourally-enhanced fundamental
analysis, active equity fund evaluation and selection, harnessing big
data, and investment firm structure. You learn how to exploit
behavioural price distortions, how to recognise and avoid behavioural
biases (in both yourself and clients), how to extract behavioral
insights from the executives of prospective investments, and how manager
behaviour can be used to predict future fund performance.
An indispensable tool, Return of the Active Manager rationalises the
financial markets and prescribes actionable strategies that build on the
lessons of behavioural finance.