JP Morgan Asset Management 

How understanding behavioural biases can unlock value

 

Behavioural finance processes behind fund management can help managers find opportunities to invest.

Blake Crawford, portfolio manager of the JPMorgan Europe Dynamic Ex-UK Fund, said understanding behavioural finance can help managers avoid irrational decisions.

He said: "We are trying to identify where behavioural biases are in play, as this is where we can find mis-priced securities to extract alpha for our clients."

By ascertaining value, quality and momentum drivers, he said the managers could find cheap, high-quality stocks as these have a "persistence to their earnings" and can deliver value to the shareholders.

To find out more, watch the video.

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