Reduce the emotion … to reduce the risk

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Livewire Markets

All investors are bound to struggle with emotion, as did Olivia Engel, CIO – Active Quantitative Equity at State Street Global Advisors, at the start of her investing career. However, as she describes here, by implementing a quantitative approach, she reduced the emotion in the process, thereby reduced the risk.

In this exclusive video, Olivia illustrates this strategy in practice with an anecdote about an investment in the gaming sector that she researched early in her career. This experience taught her that by removing emotion and behavioural biases, the investment process can become a lot less dangerous.

Watch below to hear how a quantitative approach can allow investors to make decisions more dispassionately and avoid wearing unnecessary risk.

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