Fri, Dec 9, 2022
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"

Monday, March 26, 2007
Björn Englund shares his experiences on catching “ falling knives” (investing in out of favour S&P stocks) using behavioural finance insights.

A SQUARE :: 26Mar07 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

[10Dec08] [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

[04Jun08] [Behavioural Finance] Neural Network Investing
Can human beings ever trade like systematic, emotion-free, systems?

Download

[02Oct07] [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

[25Sep07] [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

[09May07] [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

[12Feb07] [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. Opalesque Exclusive: Marks delves into what really matters[more]

    B. G., Opalesque Geneva: Howard Marks, co-founder and co-chairman of Oaktree Capital Management, weighs what should and should not matter for investors in his latest memo last week. Among the things t

  2. Legal: British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m, DOL slams lawsuit seeking to overturn crypto guidance[more]

    British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m From Offshore Alert: Four days before a trial was due to start in the Cayman Islands, British fund manager Jeremy Leach and eight of his firms settled a fraud complaint by agreeing to pay $11.5 million o

  3. Family offices upbeat on private assets, reduce public assets exposure[more]

    Laxman Pai, Opalesque Asia: Family offices are investing more in private assets and cutting back on investments in public markets, with higher risk-adjusted returns cited as the main driver, said a study. According to the survey findings by German digital private equity firm Moonfare, and the

  4. Opalesque Exclusive: A Swiss managed futures strategy that can offer diversification to any portfolio[more]

    B. G., Opalesque Geneva for New Managers: TARO (R) Diversified is a Swiss algorithmic and systematic investment strategy that offers diversification benefits to almost any professionally managed portfolio through it

  5. Alts manager Medalist Partners acquires a minority stake in Semper Capital to tap opportunities in structured credit[more]

    Laxman Pai, Opalesque Asia: Medalist Partners, which specializes in private credit, has acquired a minority stake in Semper Capital to extend its offerings to the mass market. Medalist currently manages approximately $2.2 billion in assets across strategies in asset-based private credit, struc