Moneyball Investing: Trust the Data, Not the Behavior
How do you define risk? For Billy Beane, the famed general manager of the A’s, risk meant something far different to him than the team’s scouts. Their version of risk, by virtue of their role as talent evaluators, incorporated job security concerns about their own supposed expertise and know-how. Billy only cared about data. He didn’t trust his scouts or even his own mind to make the best decisions…he wanted to strip all of that out and focus only on the data.
So the question becomes: for all of Moneyball’s focus on the efficiency of data, why hasn’t the asset management community embraced the concept more?
New Age Alpha trusts only the data…not the behavior coming from humans interpreting vague and ambiguous information. We don’t try to predict winners; we simply aim to avoid the losers. The result is a bullpen, or portfolio that seeks to unearth a new source of outperformance in any investment universe. Dave Nadig, CIO of ETF Trends and ETF Database, will moderate a discussion on:
- Why traditional asset management continues to fail investors
- Why the Moneyball approach to investing is such a unique way to show your clients something new
- Why avoiding the losers is so much more important than trying to pick the winners
Pending acceptance for one hour of CFP/CIMA CE credit for live and on-demand attendees
CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.
Julian KoskiCo-Founder and Chief Investment Officer
New Age Alpha
Andy Kern, PhDSenior Portfolio Manager
New Age Alpha
Dave NadigCIO, Director of Research
ETF Trends and ETF Database