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.
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