Lion Global Investors works with Inalytics for its curated portfolios range

Lion Global Investors, a Singapore-based asset manager with over US$43bn of assets under management, will use Inalytics to help select and monitor active managers in its range of curated portfolios.

Inalytics is excited to be working with Lion Global Investors in helping their team identify investment skill and select best in class managers.

On announcing the collaboration with Inalytics, Gerard Lee, CEO of Lion Global Investors, stated: “With Inalytics, we are better equipped to establish the link between process and performance, a link which is often ignored by just focusing on performance numbers.”

Rick Di Mascio, CEO and founder of Inalytics, responded: “We are delighted that Lion Global Investors has decided to use our analysis of investment skill to build their curated portfolios. The service is used by asset owners and fund managers in 10 countries and Lion Global Investors will be the first fund house in Singapore to collaborate with Inalytics.”

To find out more about how Inalytics analyse decision making and portfolios to help you improve the investment process and select skilful portfolio managers, please contact us.

Research Paper 12: Research: The Foundation for Alpha

Investment Skill and the Research Process

The research process is the first building block in the investment process and a key metric of investment skill; it is where ideas are generated and fight for a position in the portfolio. The importance of research is undoubted. However, what is the relationship between successful decision making in the research process and the ultimate goal of alpha generation?

Using the Inalytics Peer Group, we uncover the relationship between decision-making success in the research process and alpha generation. This paper furthers our understanding of investment skill and reveals why it is essential for asset owners to assess the effectiveness of the research process in conducting due diligence. For asset managers, it provides a new way to analyse their investment process when it comes to idea generation and alpha generation.

Download the Research Paper below to learn more about how we identify investment skill or contact us to find out more about how we analyse both decision making and portfolios to help improve the investment process and select skilful portfolio managers.

Research Paper 11: Selling over Earnings Announcements

Investment Skill in Sell Decisions

Our co-authored academic paper, Selling Fast and Buying Slow: Heuristics and Trading Performance of Institutional Investors, uncovered the alpha destroying trend of poor selling made by fund managers.

An additional insight of the paper was that selling decisions made after earnings announcements were significantly better than when taken randomly. In our latest Research Paper, we drill down further to explore the characteristics behind these selling decisions using both our analytical framework and our Peer Group database.

Download the Research Paper to learn more about how we identify investment skill or contact us to find out more about how we analyse both decision making and portfolios to help you improve the investment process and select skilful portfolio managers.

Podcast S1 Ep5: Managing Bad News

How do you bounce back after poor performance?

Managing Bad News is episode 5 of the Analysing Investment Skill podcast hosted by Rick Di Mascio, CEO of Inalytics, and Tim Harkness, renowned sports psychologist and data analyst.

We know too well that elite professionals come up against periods when they need to manage bad news and overcome poor performance or decision making.

In this episode, Rick and Tim discuss how to bounce back after bad news, the importance of staying resolute and professional in the face of adversity, and how to isolate external factors from personal mistakes.

Listen to Episode 5, here:

Listen to more episodes of the Analysing Investment Skill podcast.

Podcast S1 Ep4: Data and Performance

How do you harness the power of data to improve your process?

Data and Performance is episode 4 of the Analysing Investment Skill podcast hosted by Rick Di Mascio, CEO of Inalytics, and Tim Harkness, renowned sports psychologist and data analyst.

Following the previous episode’s discussion about where data is being misused, Rick and Tim discuss how data can be effectively harnessed as a way of driving continual improvement.

How has data allowed experts to focus on getting an additional 1% out of the very best 1%?

Listen to Episode 4, here:

Listen to more episodes of the Analysing Investment Skill podcast.

Podcast S1 Ep3: People and Data

Personalising the Objectivity of Data

People and Data is episode 3 of the Analysing Investment Skill podcast hosted by Rick Di Mascio, CEO of Inalytics, and Tim Harkness, renowned sports psychologist and data analyst.

Data is in an increasingly powerful tool whether you are looking at sports or fund management performance; however we need to be able to look beyond the numbers to get anything meaningful.

Rick and Tim look at the importance of people and personalisation in an increasingly data-driven world.

Listen to Episode 3, here:

Listen to more episodes of the Analysing Investment Skill podcast.

Podcast S1 Ep2: Maintaining Focus

How do elite professionals maintain focus under pressure?

Maintaining Focus is episode 2 of the Analysing Investment Skill podcast hosted by Rick Di Mascio, CEO of Inalytics, and Tim Harkness, renowned sports psychologist and data analyst.

Maintaining focus under pressure can be incredibly challenging, whether you’re competing for an Olympic medal or managing an investment fund. Rick and Tim discuss how elite professionals stay focused and composed when the competition gets tough.

Listen to Episode 2, here:

Listen to more episodes of the Analysing Investment Skill podcast.

Podcast S1 Ep1: Overcoming Poor Performance

How to react to and overcome poor performance

Overcoming Poor Performance is the first episode of the Analysing Investment Skill podcast hosted by Rick Di Mascio, CEO of Inalytics, and Tim Harkness, renowned sports psychologist and data analyst.

Periods of poor performance happen to almost everyone, even the very best and elite in their profession. In our first episode, Rick and Tim look at what causes performance problems, and how they can be overcome.

Listen to Episode 1, here:

Listen to more episodes of the Analysing Investment Skill podcast.

Are shorts just negative longs?

Evidence from detailed hedge fund portfolio data

Should short positions be considered as negative long positions? How does short selling differ from long investment?

Are shorts just negative longs? is an academic paper co-authored by Sandro Lunghi from Inalytics and Bastian von Beschwitz from the Federal Reserve Board, which explores these questions.

Using the Inalytics Peer Group database, which comprised of 21 long-short hedge funds from 2005 to 2015, the co-authors explore the differences in decision making when trading long and short positions.

The paper finds that long buys and short sells are informed, but that long sells and short buys are uninformed. In fact, it the authors find that it is possible to generate significant alphas by taking the opposite trades to long sells and short buys. This implies that hedge funds close their positions too early and “leave money on the table”. Furthermore, while hedge funds trade on momentum when trading both long and short positions, subsequent orders exhibit a momentum bias for shorts and contrarian bias for longs. We argue this comes from hedge funds’ desire to keep their position sizes stable.

Download the full academic paper below or contact us to learn more about how we analyse portfolios and decision making to help improve the investment process and select skilful portfolio managers.

Harnessing Machine Learning

Using machine learning to provide custom portfolio analysis

The team at Inalytics has expanded their analytical tools to include machine learning. Machine learning is an innovative approach that allows the team to analyse datasets in a customised and bespoke way. Using machine learning, clients are able to see patterns and clusters in the data that would have otherwise been been obscured.

Download the full paper below to understand how we are using machine learning to identify investment skill.

Contact us to learn more about how we identify investment skill and help improve decision making for both asset manager and owners.