Right-Brain Left-Brain Investing
7 Pages Posted: 16 May 2013
Date Written: December 1, 2010
Investors need to understand the meaning of a number of basic performance statistics used to evaluate investments. These statistics are useful in pinpointing pertinent areas of investigation during investment due diligence reviews. However, past returns are in fact poor predictors of future performance, so that quantitative analysis alone is not sufficient to source and identify good investments. Qualitative judgment usually needs to be the determining factor in most investment decisions. We describe in this article some practical examples of the interplay between quantitative and qualitative assessments of investment opportunities.
Keywords: investment due diligence, multi-manager, investment risk
JEL Classification: G14
Suggested Citation: Suggested Citation