π₯π₯π Thank you Professor Alex Edmans for authoring brilliant ground-breaking research:
The Power of Diverse Thinking π₯ β a must-read report, commissioned by the Diversity Project - Investment Industry.
This is an impressively rich analysis which moves cognitive diversity forward...
π₯Brief key takeaways π:
β
π£π― Cognitive Diversity = Strategic Alpha
β‘οΈβ¨ US$7.9T: The green economy isn't the only outlier - diverse thinking is another
β‘οΈβ¨ Cognitive diversity supports idea generation, blind spot detection, & information integration
β‘οΈβ¨ Crucial in investing where the information set is vast and uncertainty is high
β‘οΈβ¨ Asset managers must think differently from the market to create value - diversity helps you do that
β
π£π― Not all diversity is equal - precision matters
β‘οΈβ¨ Greatest performance lift? From skills-based diversity (professional, sector, country expertise)
β‘οΈβ¨ Demographic and cognitive style diversity show mixed evidence
β‘οΈβ¨ Diversity needs to be task-relevant and context-specific to be additive
β
π£π― Culture makes or breaks it
β‘οΈβ¨ Without psychological safety, diverse teams underperform
β‘οΈβ¨ Inclusion should come first - not last - in DEI
β‘οΈβ¨ "Add diversity and stir" won't cut it - leadership must actively curate the team environment
β
π£π― Practitioner insights reinforce the evidence
β‘οΈβ¨ Outperformance requires constructive dissent and asymmetric information sharing
β‘οΈβ¨ Meetings need structure - avoid groupthink, false consensus, and dominance bias
β‘οΈβ¨ One-on-ones, social connection, and agenda-setting are powerful
β‘οΈβ¨ Quote: "Not every meeting is a strategy meeting" - tailor diversity to the task
β
π£π― The asset manager identity paradox
β‘οΈβ¨ Too much internal diversity can dilute firm identity - clients also value clarity of style
β‘οΈβ¨ Diversity in the industry β diversity in every firm - nuance matters
π£π―π₯ As the report concludes:
"Firms that manage cognitive diversity well will enjoy a significant competitive advantage."
π₯ It's been a privilege to have been part of the Diversity Project - Investment Industry's Taskforce alongside:
Adriana Weber, Chloe Duncan, Chris Gothard, Christina Rehnberg, Devvya Sharma, James Whiteman, Julia Hobart, Linda Russheim, Lindsey Bass, Paras Anand and Tord Stallvik, led by Helena Morrissey π
Huge thank you to the Diversity Project - Investment Industry π₯
π₯ Links in post below
π₯ Views are my own
Cognitive Diversity Research Alex Edmons June 2025 | Arun Kelshiker CFA, CAIAPost
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| Cognitive Diversity Research Alex Edmons June 2025 | Arun Kelshiker CFA, CAIA |
| π₯π₯π Thank you Professor Alex Edmans for authoring brilliant ground-breaking research: The π₯#Power of #Diverse #Thinking π₯- a must-read report, commissioned by the Diversity Project - Investment Industry. This is an impressivrly rich analysis which moves #congitivediversity forward... |
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Arun Kelshiker
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