Essentia Analytics, founded by a former hedge fund manager turned software company president, wants to help traders identify decisions that make money and avoid those that don’t.
By analyzing under what circumstances portfolio managers have underperformed – through a combination of machine learning and human analysis – the startup seeks to nudge them toward different choices in the future.
Essentia often appeals at first to endurance athletes and academically-minded traders interested in overcoming their own biases. But it can be hard to convince some veteran traders to look in the mirror.
Visit Business Insider’s homepage for more stories.
Clare Flynn Levy knew she was doing something right picking technology stocks in the late 90 , but she didn’t know exactly why.
Just out of Barnard College at the time, the then-portfolio manager at Deutsche Asset Management was “the toast of my team,” she recounted in a recent interview in New York. Her portfolio was soaring in tandem with the tech sector, but she couldn’t find much information to explain why she did so well. Was she holding stocks for the right amount of time, adding appropriately, or exiting particularly well? Could she have made any of those decisions better and …read more
Source:: Businessinsider – Finance