Over 300 professional fund managers have taken a test to measure the scale of behavioural biases. This paper presents the results. Amongst other finds we show fund managers seem to suffer from over-optimism, representativeness, framing and anchoring. We also use Fredericks Cognitive Reflection...

How can behavioural finance inform the investment process? We have taken a hypothetical 'typical' large fund management house and analysed their process. This collection of notes tries to explore some of the areas in which understanding psychology could radically alter the way they structure...

We have played a classic Keynes' beauty contest with over 1000 professional investors. We find that on average professional investors are using between one and two steps of strategic thinking in forming their expectations. We also find that many investors suffer the curse of knowledge and end up...