Mind your behaviour
Hedge fund managers are becoming interested in behavioural theory, anincreasingly influential branch of economics that describes the role of intuitivebias in investment decision-making. According to one finance professor,behaviouralism provides valuable lessons for hedge fund investors, and offersthe best account for the demise of LTCM.
In 2002, psychologist Danny Kahneman was awarded the Nobel Prize for economics for integrating “insights from psychological research into economic science, especially concerning decision-making
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