Albert Bridge Capital manages concentrated long-only equity portfolios for institutional investors.
The hallmark of its Alpha Europe strategy is the application of tenets of behavioural finance to a rigorous, fundamental, process-oriented approach to stock-picking and portfolio construction.
That’s Benjamin Graham quoted above, as he suggested that stock selection was not merely about number-crunching and valuation.
If Graham was the grandfather of behavioural finance, then Nobel Prize winner Richard Thaler is the father, as his research spawned a new focus in economics on the importance of bias in financial markets, decision-making, and asset pricing.
Utilizing this framework, CIO Drew Dickson - a former student and research assistant for Professor Thaler - has developed the Alpha Europe process to seek behaviourally-affected, often-unconventional, differentiated, idiosyncratic ideas with asymmetric payoffs. The firm then employs capital in a portfolio concentrated in these investment opportunities.