What are the most important factors that determine effective team performance? Ben Darwin, an ex-elite sportsman and coach, analyses Platinum's investment team structure and the core determinants of the performance of a group.
Many of you will know the book or film, ‘Moneyball’. Essentially it is about applying statistical methods to select sportsmen and sportswomen, as opposed to the old way of relying on hunches and intuition.
At Platinum, we use quantitative methods as part of our stock selection process. It is so easy to be swayed by feelings rather than testing the base line statistics when building a portfolio. May we suggest that you face the same dangers when making decisions about fund managers.
To address this we have prepared a video presented by Ben Darwin. Ben, who was an elite sportsman and coach, has developed a statistical method to assess the cohesion of teams. He believes vehemently that performance of any group ultimately depends on team cohesion.
This is relevant to Platinum as we started on a journey over five years ago to re-organise the investment team into smaller specialist groups. As you will see from this video, work begun in 2012 is now showing through. The performance of our individual funds attests to its efficacy.
DISCLAIMER: The above information is commentary only (i.e. our general thoughts). It is not intended to be, nor should it be construed as, investment advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Before making any investment decision you need to consider (with your financial adviser) your particular investment needs, objectives and circumstances. The above material may not be reproduced, in whole or in part, without the prior written consent of Platinum Investment Management Limited.
Cohesion at Platinum (Video)
Cohesion with Ben Darwin (Video)
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