System 2 Capital LLP
Financial Services - London, England, United Kingdom
System 2 Capital LLP Employees
System 2 Capital LLP Details
INVESTMENT PHILOSOPHYSystem 2 Capital is founded on the belief that awareness of cycles is critical to the positioning of relative value portfolios. Diversification, hedging, niche credit and volatility strategies and the appropriate margin of safety can reduce the risk of capital loss and provide superior absolute returns across business and credit cycles.WHY ARE WE CALLED SYSTEM 2 CAPITAL?A structured and systematic approach to avoidance of decision bias to generate improved decision makingSystem 1 and System 2System 2 is an homage to Daniel Kahneman and Amos Tversky, leaders in the field of behavioural economics, who used the concept of System 1 and System 2 to describe different ways that the mind worksSystem 2 is the name used for the mode of thinking which is slow, deliberate and includes complex decision-makingSystem 2 is to be contrasted with the System 1 mode of thinking which operates automatically and quickly, but is lazy with little effort and self-correction. System 1 is responsible for the irrational behaviour demonstrated by all of us at different timesMaking Better DecisionsUnlike some other asset classes, successful credit investing is arguably more about minimising bad investment decisions, rather than picking great investment decisionsTversky and Kahneman identified a range of reasons behind why people make poor or irrational decisions and grouped them under the following categories:Use of heuristics and biasesOverconfidenceHow emotions impact our choicesNo-one is immune from these influences, so to combat them we subject all our analysis and decision-making to scrutiny under a checklist of each of the underlying risksIn addition, being in a firm named System 2 reminds each person, every day, to focus on critical thinking
System 2 Capital LLP Technologies
Email Providers
Gmail
CMS
WordPress.org
Tag Management
Google Tag Manager
Other
Mobile Friendly
Hosting
GoDaddy Hosting