If You’ve Got It, Use It

In the research paper, Early is Good, we showed that the added value from a position accrues much earlier than people think and it’s an auspicious sign of good outcomes to come.

The question we investigate here is how investors leverage this skill in practice.

We find that they:

• Have high turnover of new names (research velocity) • Are quicker at building the positions • Run their winners • Are less likely to anchor on to previous losers

This paper takes us through the evidence based on the 1,214 portfolios in the Inalytics peer group.