Irrational Capital is an investment research and development firm that applies workplace behavioral science, financial acumen and data science to capture the powerful connection between human capital and financial outcomes.
We provide our partners with The Human Capital Factor, a service predicated on analyzing proprietary corporate culture data which enables them to create bespoke investment strategies.
Our work begins by analyzing a non-replicable blend of proprietary and public data that aggregates millions of employee responses about deeply emotive characteristics such as trust, purpose, pride, psychological safety, transparency and more, within thousands of companies. Independent J.P. Morgan quantitative research confirmed that a sector-neutral index created using The Human Capital Factor generates “the highest returns and lowest volatility among all U.S. investment styles, with very low correlation to other factors.”
We are the first firm to quantitatively capture the lift that strong corporate culture has on a company’s stock price in an investable way. By uncovering the capital in human capital, we help create investment options that prove definitively that doing the right thing pays.
"
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.
–Dan Ariely
Behavioral Economist
Co-Founder, Irrational Capital
Introducing The Human Capital Factor
The Human Capital Factor goes beyond simple check-the-box social investing by fully understanding company culture and intrinsic employee motivation, and then transforming these insights into high-returning investment strategies.
Dan is a Founding Partner of Irrational Capital and a leading behavioral economist, author, entrepreneur and a James B. Duke Professor of Psychology and Behavioral Economics at Duke University. He is also a founding member of the Center for Advanced Hindsight.
Dan’s groundbreaking work in behavioral economics has led to the publication of several New York Times bestselling publications including Predictably Irrational: The Hidden Forces that Shape Our Decisions. He also contributes a regular column to The Wall Street Journal, “Ask Ariely,” and has delivered numerous TED Talks with over 10 million downloads.
_edited.png)
David is a Founding Partner of Irrational Capital, focusing on the development of investment strategies and business growth.
David was the Founder of the impact investment firm which incubated Irrational Capital and previously co-founded a leading alternative asset sponsorship firm. Earlier in his career, David was MD and CEO of a large financial institution’s private equity and venture group and CEO of the European division of a large training and strategy firm. David began his career in technology, where he held business development roles and helped establish several new, large-scale businesses.
Ryan serves as Chief Operating Officer, lending his insights to the business operations, legal and compliance aspects of the business. Prior to joining Irrational Capital, Ryan co-founded GrowthCounsel LLC (2010), a boutique law firm providing transactional support and general counsel services to growth companies and started his career as an M&A attorney at an AMLAW 100 firm.
Scott is Head of Strategy and Risk, covering a range of research and portfolio management activities. He previously served as Vice President at a multibillion-dollar asset management firm, designing equity strategies and leading product and data teams. Scott was also the director of research to a corporate finance consulting firm and began his finance career in venture capital.
As Chief of Staff, Shannon directs all administrative and day-to-day operational activities of Irrational Capital. She has over ten years of experience in financial services, including at JP Morgan’s Private Bank. Shannon also served as the Secretary of the Board of Directors for a large national CDFI, as well as the Executive Assistant to the CEO and executive staff.
Michael covers a range of advanced data analytics and investment research activities. He previously served as a manager at Ernst & Young’s Quantitative Advisory Services Group, leading a series of Artificial Intelligence research initiatives and providing development and validation services on capital market models for various global financial institutions. Prior to that, he had quantitative research and development experience with trading firms as well as within the aerospace industry. Michael holds a MS in Financial Mathematics from the University of Chicago and a PhD focusing on physics of fluids from the Oregon State University.
Prior to joining Irrational Capital, Pete founded Melgren Analytics, a boutique Data Science consulting firm that focuses on making Data Science projects accessible to startups and small businesses. Pete has also worked as an analyst for the Cincinnati Reds where he held the unofficial title “Jonah Hill from Moneyball (but in Ohio).” He began his career as an Economist for Moody’s Analytics. Pete holds a Bachelor’s degree from the University of Michigan in Economics and Applied Mathematics.
Zachary David advises Irrational Capital on critical research projects relating to model development, machine learning, artificial intelligence, and statistical analysis. Zak is an academic researcher with AlgoFinance, a Copenhagen Business School collaboration with the European Research Council, developing base modeling for real-world simulations of high-frequency market-making. Zak serves the Machine Learning & Market Microstructure desk editor for the Journal of Algorithmic Finance. In addition, he is a co-founder of Mile59 (now Urvin.ai) and Urvin.finance and previously developed systematic FX strategies with a Chicago-based proprietary trading firm.
CONTACT
BACK TO TOP
