SPECIALIST ASSET MANAGEMENT COACHING – SALOMON PARTNERS

Every top sportsman and sportswoman uses coaches, as does nearly every top-class performer, whether in fields as wide-ranging as chess, classical music or the performing arts. Why is coaching so encouraged and welcomed in other performance-related professions, yet in asset management to ask for help is often seen as a sign of weakness? Thankfully this outdated view is changing as investors recognise that skill can be enhanced. For this reason it was a privilege to join Salomon Partners in 2014.

Salomon Partners offer specialist one-to-one coaching to develop investment management skill, using behavioural economics, personality analysis and ‘deliberate practice’ techniques to enhance a portfolio manager’s self awareness and discipline.

We’d like to tell you more – two options

As a non-committal introduction, Salomon Partners are delighted to offer two options:

  1. Spend an hour in your offices with one or more of your executives, including CIOs, HR heads or a group of investors, to discuss the benefits of our specialist coaching for asset managers.
  2. Provide a two/three hour “Masterclass” aimed at investment teams which provides more detail about some of the most important themes of their coaching modules, including behavioural economics, investment biases, personality, self-awareness and implementation recommendations, based around your investment rules and style.This Masterclass is designed for investment teams across single or multi-asset asset classes and works particularly well as part of your firm’s ‘offsite.’

Both the one hour meeting and longer Masterclass are an ideal non-committal introduction to specialist asset management coaching. Please contact me for more information.

THE MASTERCLASS (2.5/3 hours) – typical agenda:

Hour 1: Behavioural Finance and the Human Brain

  • What is behavioural finance?
  • Background and history: from the ancient Greeks to Adam Smith to Daniel Kahneman
  • Understanding the human mind – the Elephant and the Rider concept
  • System 1 vs. System 2 thinking
  • The concept of biases and heuristics
  • The major biases in investment – social, decison-making, probability and memory
  • Psychology experiments with the audience

Hour 2: Behavioural Finance and Investment Markets

  • Examples of biases in Investment Markets – equities, fixed income and currency
  • Financial Market bubbles in history
  • The 2007-09 Credit Bubble and Bust – the insights of behavioural finance
  • Famous psychology experiments and what they teach us about ourselves
  • Avoiding the lazy consensus
  • Personality and biases
  • The wisdom of crowds and the ‘nudge’ concept
  • Behavioural Finance and the Regulators
  • The inherent biases in market capitalisation indices
  • Different approaches e.g. The Shiller CAPE valuation and other measures of ‘value’
  • Fixed income applications
  • Game theory
  • Avoiding ‘Groupthink’
  • More experiments with the audience

Hour 3: What can we do about our personal investment biases?

  • Why is investment the only performance based industry where participants don’t ask for help?
  • How coaching can help investors – performance and other benefits
  • Improved awareness of personal investment rules
  • Defining skill – what it is and what it isn’t
  • Understanding the luck vs. skill continuum
  • Emotion and discipline
  • Outcome versus Process – how the industry confuses the two
  • The Loser’s Game
  • What’s my investment edge?
  • Warren Buffett’s ‘Circle of Competence’ concept
  • The importance of deliberate practice for investors
  • Using technology
  • Consequences of investment coaching: self-awareness, discipline, communication and culture