Only 18% of fund managers make the right decision most of the time

Elliot Gulliver-Needham
clock • 2 min read

Only 18% of fund managers make the correct decision a majority of the time, according to a new research paper by Essentia Analytics. The Essentia Behavioral Alpha Benchmark, which launched today (15 September), uses propriety analysis to attempt to assess portfolio managers on their  decision making skills, rather than their recent past performance, which is "highly subject to the random effects of luck". This tool incorporates seven key metrics to assess fund managers: stock picking, entry timing, sizing, scaling in, size adjusting, scaling out and exit timing. The paper found tha...

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