Tue, Jun 19, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
A SQUARE

Expertise on investing in "falling knives"

Tuesday, March 27, 2007
Björn Englund shares his experiences on catching “ falling knives” (investing in out of favour S&P stocks) using behavioural finance insights.

A SQUARE :: 27Mar07 Expertise on investing in "falling knives"
Category Behavioural Finance
Faculty Bjorn Englund
Expertise Behavioural Finance - Falling Knives
Author Sona Blessing
Faculty Name
How has behavioural finance helped you catch “falling knives” (out of favour S&P stocks)?


While the hypothesis of an efficient market is widely embraced, it fails to explain some recurring investment anomalies that do exist. These anomalies can be explained by behavioural finance theories,
which concede that some other factors are at play (some irrational - some rational). As human
beings we tend to behave irrationally when we experience stress, fear, when we are emotionally charged etc. We also need to rationalise and hence tend to find comfort in known, recognised behaviour patterns such as following the rule of thumb; seek loss minimisation, move in herds etc.

Download this research The many benefits of an A SQUARE subscription Recommend to a friend

<< A SQUARE archive sorted by date    << A SQUARE archive sorted by category

 Article link
More research related to Behavioural Finance

[11Dec08] [Behavioural Finance] A behavioural finance fund
Statistical analysis is used to determine whether recent price action is consistent with investor or speculative market participants

Download

[05Jun08] [Behavioural Finance] Neural Network Investing
Can human beings ever trade like systematic, emotion-free, systems?

Download

[03Oct07] [Behavioural Finance] Exploring the cultural impact on investing ... expertise with Mei Wang
An interesting reflection of this behaviour can be observed in choosing health insurances. Together with Paul Fishbeck (Carnegie Mellon University), I found that framing has a bearing and influences health insurance decisions of Chinese subjects, but not

Download

[26Sep07] [Behavioural Finance] JP Morgan Undiscovered Managers Behavioral Growth Fund (Institutional Class)
Exploiting the mental mistakes investors make - (that may cause the market to underreact to new, positive information concerning a company)

Download

[10May07] [Behavioural Finance] Osiris Equities EMU Behavioural Value
The fund is unique because it has managed to apply and convert behavioural finance concepts into behavioural investing

Download

[13Feb07] [Behavioural Finance] LGT Equity Funds Global Sector Trends
A fund that uses a behavioural finance approach in portfolio allocation

Download
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  2. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  3. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  4. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  5. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv