AgPa #75: Optimal Investment Committees
Optimal Design of Investment Committees (2023)
Bernd Scherer
The Journal of Asset Management, URL/SSRN
After a long break of almost exactly 3 months – I had several other tasks that required my intellectual capacity – it is time for a new AGNOSTIC Paper. This one examines the design and challenges of investment committees (ICs). Even more important, the author suggests a simple and powerful solution for some of their most common challenges. As someone who regularly enjoys the process of committee-based decision-making, I believe this week’s paper is quite powerful and offers a lot of valuable lessons for both investment managers and their clients.
- Good theory: ICs ensure the same quality for all clients
- Bad practice: ICs suffer from psychological biases
- Solution: Anonymous member-portfolios