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4 Sources of Edge for Active Managers
May 17, 2021
by Simon Hallett, CFA
Vice Chairman
Harding Loevner
Having a structured process is still the key to enabling better investment decision-making.
People are deeply flawed when it comes to making investment decisions. It is vital for active investment managers to be aware of their own behavioral defects as humans and counter these shortcomings with process. Good active managers must be able to identify their “sources of edge,” the characteristics that enable them to generate sustainable alpha.