Philippa Huckle

CEO

The principles behind sensible portfolio management aren’t new. Way back in 1654 two quarrelling gamblers first formalised the mathematical theory of probability. Even earlier, the Bible was already advocating diversification:

“Divide your investments among many places,
For you do not know what risks might lie ahead”

Diversification’s merits were not lost on Shakespeare either:

“My ventures are not in one bottom trusted,
Nor to one place; nor is my whole estate
Upon the fortune of this present year:
Therefore, my merchandise makes me not sad.”

And it’s true: the tried and tested methodologies behind modern portfolio management (diversification, proper asset allocation, rebalancing) – when properly applied – are indeed the most reliable way to control the volatility (bounciness) and return of a portfolio of investments. We’re advocates of these methodologies – that’s the hard work that our Portfolio Management Team systematically hammers out.

We couldn’t help noticing one fundamental drawback: the decisions to actually implement these methodologies must ultimately be signed off by the investor. And investors of course, are human.

Fortunately Behavioral Finance exists. It’s the science of recognising and avoiding investment mistakes which arise out of the way our human brains make decisions. By incorporating these lessons into textbook investment methodologies, you can reduce errors – to ultimately end up worth more money.

CEO Philippa Huckle is an international authority on Behavioral Finance. She’s appeared on an elite financial panel with Nobel prize-winner Daniel Kahneman (Economics 2002). As a global financial commentator, she is regularly featured in the international media. In 2009 she was named “Hong Kong’s Most Extraordinary Woman In Finance”.

Outside of the office, you’re likely to find her on a tennis court. “I find so many parallels between tennis and the work I love. Of course tennis demands a lot. It takes commitment, rigour, dedication; but it’s also a wonderful kind of never-ending pursuit that just keeps generating all kinds of fulfilment and excitement. It’s a fantastic combination of seriousness and play. Basically I just really, really enjoy experiencing those feelings.”