Irrational Capital brings together experts across a wide range of disciplines; including behavioral economics, data science, applied math, quantitative finance, capital markets, business strategy, and operational practices to discover statistically significant links between human behavior and subsequent excess market returns. To learn more about our Different Thinking click here.
Irrational Capital has developed and tested the 'science' and 'method' of how company and employee behavior directly drive excess stock performance. Each potential strategy is tested for statistical significance against Fama-French-Carhart factors (covariance vs. the market, value, size, and momentum). Irrational Capital's strong results and low p-values confirm statistical significance, resulting from its large and rich data universe. To learn more about our Different Selection click here.
Non-replicable, proprietary, data sets underpin each of Irrational Capital’s strategies. Many of the 'big-data' sources used by Irrational Capital have never before been explored for their potential application and correlations to capital markets.
The fusion of leading behavioral science, quantitative methods and capital market insights are the foundation of Irrational Capital's edge
Academic, scientific and quantitative rigor are melded in each step: hypothesis to verification. To learn more about our Different Process click here.
Irrational Capital provides a range of strategies and investment products which have been developed to allow investors to gain exposure - in the form of both long only and long/short public equity portfolios - to the potential correlation between human behavior and stock price.
One example is Irrational Capital's DA-Clear Motivation Index which has been designed to track the price movement of a basket of mid- to large cap companies whose employees exhibit certain patterns of behavior and motivation believed to predict future excess returns.
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