BehavioralCIO – Behavioral Finance and Risk Management Consulting
Institutional thinking and behavioral discipline designed to prevent costly investment mistakes..
Behavioral Biases
Our tools and frameworks educate clients on behavioral biases, quantify their impact and support clients on how to mitigate biases due to flawed heuristics, emotional swings, overtrading, etc.
Portfolio Analytics
Our custom built Python tools include dashboards, data visualization, drawdown analysis, hidden bias detection, PCA, portfolio optimization, risk analytics, security screening, statistical pattern analysis
Investment Strategy
Our frameworks include economic moat analysis, industry trends, impact of macro shocks, position sizing strategy vs risk appetite, sector level valuation metrics, stock sector theme analysis, Interest Rate and cross asset relative value
Asset Allocation
Frustrated with optimizers that chase high past returns and allocate most capital to one or two high performing assets? One of the key underlying problems is poor inputs for the expected mean returns. The graph to the left shows the same mean returns can have vastly different risk profiles. We have experience optimizing portfolios and mitigating optimizer biases.
Behavioral Finance
Multiple behavioral biases such as Endowment bias, Fear of Missing Out bias, Overconfidence bias, Recency bias can handicap investor decision making process and sabotage portfolio returns. The right hand side chart shows after 20 years an investors wealth is 50% less than the market opportunity set due to Endowment bias.
Who We Serve
Entrepreneurs managing significant liquidity events
Family offices seeking institutional portfolio discipline
Investors holding large cash positions unsure when/how to deploy
Retirees concerned about sequence of returns risk
Traders seeking trading diagnostics and process improvement
Featured Work
“[advantage that scientists bring to the Hedge Fund industry] They are less likely to accept an apparent winning strategy that might be a mere statistical fluke”
JIM SIMONS
“Think for yourself to decide 1) what you want, 2) what is true, and 3) what you should do to achieve #1 in light of #2 and do that with humility and open mindedness”
RAY DALIO
“Financial innovation can be dangerous . . . New financial products are typically created for sunny days and are almost never stress tested for stormy weather”
SETH KLARMAN
Let’s work together on enhancing your analytics, process or mindset
Visitors are welcome to review the resources across this site this to learn more about our services and investment activities.
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Why Investors Buy Market Peaks FOMO Herding and How to Mitigate
Markets follow a pattern that is as persistent as it is costly: the most enthusiastic buyers tend to arrive near the end of the cycle. We’ve seen it repeatedly in diverse speculative manias—technology stocks in 2000, financials and housing in 2006, cryptocurrencies in 2021. The sequence rarely changes. Prices of the asset(s) begin rising quietly,…
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The Invisible Hand: How Your Brain’s Biases Silently Sabotage Your Portfolio
Agustin Leon, CFA | Founder of Behavioral CIO You’re intelligent. You read the reports. You follow the news. You’ve done everything “right” — yet somehow, your portfolio keeps underperforming. The market climbs, and you’re still behind. You make a move with conviction, and it costs you. You freeze when you should act, and act when…