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Further reading: Fund managers are human after all. That's the problem.

Further reading: Fund managers are human after all. That's the problem.

Overconfidence. Sensation-seeking. Limited attention. Much academic focus has been dedicated to uncovering these foibles that plague the performance of private investors. It might be natural to assume that institutional investors (who charge not insignificant fees for their services) are above such behavioural pitfalls. Not so. In their reliance on ‘heuristics’ – rules of thumb used to make judgments – these so-called 'sophisticated market participants' also exhibit costly, systematic biases.

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