Behavioral Finance

A convex strategy seems to better correspond to long-term investors in terms of preference structures, potentially ready to give up some of their earnings to avoid losses that would be difficult to handle from an emotional point of view...

According to INTRA Study of 45 Nations, local cultural differences continue to exert an influence on investment behaviour and returns. The Nordic and Germanic cultures are best suited to value investing in terms of their patience, unlike African and Eastern European cultures.

The statistical assumption of normal (log-normal) distribution of stock returns (prices) is not that strong and tail events’ occurrence is largely undervalued. Nevertheless, this modeling framework has been widely used for strong reasons.

Active multi-management has been strongly criticized by some investment professionals who would rather use either passive index management or single-stock management. Emmanuel Regnier, allocation manager at CCR-AM, shares with us his assessment of the true cost of theses alternate solutions.

According to Fabrice Foy, Quantitative Analyst at CCR-AM, we should do the exact opposite of the classical theory: the stock price does not reflect fundamentals, and if it deviates from its fundamental value, it does not necessarily tend to revert ...