GSAM's McCurdy: Behavioural finance rules apply to CIOs too

Avoid the ‘gridlock of groupthink’

clock • 3 min read

From appointing a devil's advocate to conducting a 'pre-mortem', Brendan McCurdy runs through four best practices to help investment professionals manage their own behavioural biases.

Behavioural finance is a topic du jour for investment professionals but many of us fail to look inward as we apply the discipline's insights. The fact is, however, it is not just individual investors - investment teams and investment committees can be driven by behavioural biases too. Chief investment officers (CIOs) at private banks and discretionary managers should, in our view, be especially aware of pitfalls hiding within team decision-making processes. To think the topic through, let's turn to a social-science classic - Groupthink by Irving L. Janis - for four best practices in mana...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Global Investment Management Summit: Speaker line-up includes City minister, Jeremy Hunt and FCA

Global Investment Management Summit: Speaker line-up includes City minister, Jeremy Hunt and FCA

Investing through complexity, accelerating future growth

Investment Week
clock 27 May 2025 • 2 min read
Partner Insight:  The (Trade) War You Start May Not Be the War You Get

Partner Insight: The (Trade) War You Start May Not Be the War You Get

Loomis Sayles’ David Rolley digs into the rationale behind Trump’s trade war and its potential consequences.

David W. Rolley, CFA Loomis, Sayles & Company an affiliate of Natixis Investment Managers
clock 27 May 2025 • 8 min read
Morningstar's Kenneth Lamont: Forget AI - battery technology is the theme to watch

Morningstar's Kenneth Lamont: Forget AI - battery technology is the theme to watch

'One in every three new cars will be electric by 2030'

Kenneth Lamont
clock 23 May 2025 • 4 min read
Trustpilot
Loading page