When examining the portfolio managers' decisions, two key metrics play an important role - The Hit Ratio, and The Win/Loss Ratio. Similarly Ali outlines assessing explicit or implicit behavioural patterns that can indicate biases which we need to be aware of.
Key learning objectives:
What metrics can be used to assess the research and investment decisions of the portfolio manager?
What are some biases that lead to a suboptimal sell discipline?
How can we analyse a portfolio manager's skill level?