Dan Ariely, James B Duke professor of psychology and behavioral economics at Duke University, and co-founder of Irrational Capital published an article in Dialogue which takes a deeper dive into how the Human Capital Factor was developed, validated, and put into practice.
Ariely summarizes: "Traditional accounting considers human capital an ‘intangible’ – something that cannot be measured. Yet Irrational Capital is putting a dent in this traditional practice. Not only can it be measured, it can also be invested in. Through Harbor Capital we offer three exchange traded funds that comprise high-HCF stocks: HAPI, HAPY and HAPS... The main point is that human capital is not an ethereal factor. It is real and calculable. As we have shown, it is possible to quantify HCF and demonstrate its effect on company performance and value over time."