Irrational Capital is an investment research firm quantifying the impact of corporate culture and employee motivation on financial performance. We research and design investment strategies offering exposure to the Human Capital Factor, a direct link between company culture and equity returns.
Through cutting edge behavioral economic research on large (and often proprietary) data sets, Irrational Capital captures insights about a critical asset not yet efficiently reflected on a company’s balance sheet. Led by renowned behavioral economist Dan Ariely and his co-founder David van Adelsberg, we seek to transform the often-anecdotal views about the importance of corporate culture into investable and systematic strategies based on what we’ve coined the Human Capital Factor.
We enable financial institutions to create investable access to the Human Capital Factor via bespoke investment strategies and financial products. Our mission (together with our partners) is to target the “S/Social” component of ESG via access to alpha-capturing strategies that cannot be replicated elsewhere.
Of all the investments companies make, creating a strong culture is one of the best ways to create value. This is why employee behavior and motivation is such an important predictor of stock market performance.
Co-Founder, Irrational Capital
[hu·man cap·i·tal] / noun
an organization’s capacity to create economic value derived from its unique combination of its habits, knowledge, talent, motivation, experience and attributes. It is a critical (yet intangible) asset not captured by the company’s balance sheet.
NEWS + INSIGHTS