K.C. Hamann - Quantifying Conviction (S3E1)
Flirting with Models
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Is There an Opportunity to Evaluate Hedge Fund Positioning?
Kahneman Fursky: I wanted to find an explanation for why that was the case other than just thinking of the hedge fund as a system. The research I ended up coming across was behavioral psychology. So if we understand what biases we should see, perhaps we can invert that and say, well, instead of allowing these to be a drag in returns, let's turn them into a few. And by understanding how we're likely to see them in the data, perhaps that can help us build a mechanism to identify conviction through a behavioral lens.
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