This is the presentation I gave in Vancouver — its an expanded version of the Institute for Responsible Investing presentation I gave at the Kennedy School./


Category: Hedge Funds, Investing, Psychology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Vancouver: Romancing Alpha, Forsaking Beta”

  1. tzink7 says:

    I like these neuroscience presentations, I read every one of them on this blog. However, I believe that the slide Optimism Bias has two errors:

    1. The Dunning Krueger effect definition is correct, but there is a nuance – on difficult tasks where people have no prior experience, the worst performers are aware of their inadequacies. Thus, Dunning Krueger applies to when you have some experience at something; it is then that you overestimate your abilities.

    2. The definition of Metacognition is actually also part of Dunning Krueger – the more skilled you are at a task, the less skilled you believe yourself to be (relative to others) who you falsely believe are just as capable at the same easy tasks. Metacognition, by contrast, is “thinking about thinking.” It’s about understanding what you know, knowing how to apply it and knowing where your gaps are.

    So, I think that the conclusion is correct (competence weakens self-confidence), but from the slide it looks like you have a definition of what metacognition is, but it is actually part of Dunning Krueger.

    • Dont be so literal

      What you are seeing is the reminder text so I dont forget the bullet points I want to hit

      What you are not seeing is the discussion that accompanies each slide . . .

  2. Frwip says:

    Not knowing the HF industry, slide 32 begs a question about Pellegrini (who was on the witness stand last week in the Fab Fab affair, btw).

    August 2010, Pellegrini returned all outside investor capital.

    And? What is he up to, now?