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 Thankfully this outdated view is changing as investors recognise that skill can be enhanced.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:
- 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.
- 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