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Behavioral Finance - research and development at LGT Capital Management

"As a theory of financial markets, Behavioral Finance gives a fundamental insight into the systematic patterns that can be observed in they way people behave when making decisions under time pressure and in uncertain circumstances."
Alfons Cortés, Advisor to the Board, LGT Capital Management

Behavioral Finance, which integrates psychological findings into financial market research, is a young science with old roots. "Old roots" because the psychological principles of economic decision-making theory have occupied economists for generations.

Further attention was attracted to the subject with the awarding of the Nobel Prize for Economics in 2002 to Dr. Daniel Kahneman and Dr. Vernon Smith. However, the focus turned to Behavioral Finance primarily due to its greater proximity to stock-market phenomena in comparison with other theories.

We regard the promotion of scientific research into Behavioral Finance and other innovative financial themes as being a key element of a dynamic investment culture. This enables us to offer our clients and partners access to first-class financial products and lasting and pertinent knowledge. For this reason, we also support development projects at various universities, such as the International Foundation for Experimental Economics founded by Dr. Vernon Smith.

The leading experts are working for you

LGT Capital Management can call upon an exclusive group of scientific advisors, including Dr. Vernon Smith, Dr. Werner de Bondt (the co-founder of Behavioral Finance theory) and Alfons Cortés (a proven expert and one of the European pioneers in the field of Behavioral Finance. All of them are also members of the Investment Advisory Board of LGT Capital Management.