- Fuller & Thaler Asset Management has pioneered the application of behavioral finance in investment management
- Primarily focused on U.S. small-cap equities
- They would be open to potential new opportunities with Latin American family offices
Richard H. Thaler received the 2017 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. Back in 2002 the recipient was Dr. Daniel Kahneman. They both are associated with Fuller & Thaler Asset Management. Founded in 1993, the company has pioneered the application of behavioral finance in investment management taking advantage of over or under reactions in the stock market.
Primarily focused on U.S. small-cap equities, they offer tailored strategies which include two mutual funds as well as separately managed accounts. As Benjamin Johnson, Associate Director at the firm, told Funds Society, they would be open to potential new opportunities with Latin American family offices.
They currently also have two mutual funds that invest in small caps and one would be considered a US Small-cap blend strategy –the Fuller & Thaler Behavioral Small-Cap Equity Fund (FTHSX), as well as a sub-adviser for a US Small-cap Value focused mutual fund offered by JPMorgan Distribution Services, the Undiscovered Managers Behavioral Value Fund (UBVLX).
According to the Royal Swedish Academy of Sciences, “Thaler’s contributions have built a bridge between the economic and psychological analyses of individual decision-making. His empirical findings and theoretical insights have been instrumental in creating the new and rapidly expanding field of behavioural economics, which has had a profound impact on many areas of economic research and policy.”
Thaler has written six books and several articles. He also performed a Cameo in the 2015 movie The Big Short, were he explains the psychological fallacy of a hot hand to help reveal how a key part of the financial crisis came about.