Picking Winners Is a Losing Game – Lessons Learned From Moneyball

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The success of Moneyball, made famous by the Oakland A’s, could only be achieved by thinking differently, re-inventing a player’s worth and focusing on value. Ultimately, it relied on facts and fundamentals and disregarded the unknowable future.

Despite its reference to money management, however, such an approach has largely been ignored by traditional asset managers who continue to look for an edge. Overly confident in their ability to pick winners, these managers assume they have some predictive ability and knowledge of the future. And clearly, no one has that. Worse, this outdated approach fuels a portfolio mispricing risk that can significantly erode returns over time.

We believe that instead of trying to pick winners, portfolio managers should simply avoid the losers. Like the A’s, they should focus on the numbers—the known information—to avoid strikeouts in the market or on the baseball diamond. This presentation will cover:

• How to apply a Moneyball approach to investing and portfolio management.
• How traditional portfolio managers are exacerbating a portfolio mispricing risk caused by irrational human behavior.
• And, how to get your clients to focus on the right question, the question very few are asking: How can we avoid the losers?  

And don't miss out!

Join us for a unique and new experience with ON24 breakout rooms. 
Engage with the speakers directly after the webinar. With active audio/video/chat your experience just became more interactive! Join us and New Age Alpha on October 28 immediately after the webinar to discuss the following topics:

• Due Diligence session with Julian Koski and Andy Kern 
• H-Factor System Demonstration 
•  AVDR – ETF Presentation 

This intimate experience is not available for replay so don't miss out! 

Pending Approval for 1 hour CE:
CFP®, CFA®, CPWA®, CIMA®, CIMC®, RMA®, WMCP®, RICP®, CHFC®, FSCP®, CLU®, CHSNC®, 
CAP®. The CFP Board® accepts the LIVE program for one hour of CE credit towards the CFP® certification. If you provide the required information during the webinar registration process and stay for the entire session we will report your attendance to these organizations. Investments & Wealth Institute® accepts this webinar for 1 hour of CE credit towards the CIMA®, CPWA®, CIMC®, and RMA® certifications. If you provide the required information during the webinar registration process and stay for the entire LIVE event we will report your attendance to IWI. If you watch the ON-DEMAND event please email us at [email protected] for the IWI® webinar ID to self-report your attendance.

Speakers

Andy Kern, PhD
Senior Portfolio Manager
New Age Alpha

Andy serves as senior portfolio manager of New Age Alpha Long Short. He is also responsible for New Age Alpha's research initiatives, including historical and ongoing analysis of the H-FactorTM investment methodology. This involves adapting, testing and applying findings from academic finance literature to continually improve the company’s strategies.

Prior to New Age Alpha, Andy was Vice President at Guggenheim Transparent Value. His research helped refine and improve the firm’s proprietary “Required Business Performance (RBP)” investment process by incorporating innovative econometric techniques. He also assisted with marketing efforts, supported the external sales force, and produced content for investor and external stakeholder communications.

Andy served on the faculty of the Trulaske College of Business at the University of Missouri and his research has been published in the Journal of Financial and Quantitative Analysis. He holds an MBA and PhD in finance from the University of Missouri.