BehavioralCIO – Decision Architecture for Serious Investors
Institutional thinking and behavioral discipline designed to prevent costly investment mistakes..
Behavioral Biases
Our tools and frameworks educate clients on behavioral biases, quantify their impact and support clients on how to mitigate biases due to flawed heuristics, emotional swings, overtrading, etc.
Portfolio Analytics
Our custom built Python tools include dashboards, data visualization, drawdown analysis, hidden bias detection, PCA, portfolio optimization, risk analytics, security screening, statistical pattern analysis
Investment Strategy
Our frameworks include economic moat analysis, , industry trends, impact of macro shocks, position sizing strategy vs risk appetite, sector level valuation metrics, stock sector theme analysis, Interest Rate relative value
Asset Allocation
Frustrated with optimizers that chase high past returns and allocate most capital to one or two high performing assets? One of the key underlying problems is poor inputs for the expected mean returns. The graph to the left shows the same mean returns can have vastly different risk profiles. We have experience optimizing portfolios and mitigating optimizer biases.
Behavioral Finance
Multiple behavioral biases such as Endowment bias, Fear of Missing Out bias, Overconfidence bias, Recency bias can handicap investor decision making process and sabotage portfolio returns. The right hand side chart shows after 20 years an investors wealth is 50% less than the market opportunity set due to Endowment bias.
We are driven by values
BehavioralCIO exists to provide institutional grade analytics, behavioral frameworks and investor support at a fraction of the cost of private wealth management and top tier quantitative asset managers AQR, et al.
Featured Work
“[advantage that scientists bring to the Hedge Fund industry] They are less likely to accept an apparent winning strategy that might be a mere statistical fluke”
JIM SIMONS
“Think for yourself to decide 1) what you want, 2) what is true, and 3) what you should do to achieve #1 in light of #2 and do that with humility and open mindedness”
RAY DALIO
“Financial innovation can be dangerous . . . New financial products are typically created for sunny days and are almost never stress tested for stormy weather”
SETH KLARMAN
Let’s work together on enhancing your analytics, process or mindset
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