John Riddle has been trying to predict the behaviour of Wall Street analysts for more than 30 years.
The co-chief investment officer at Denver-based boutique asset manager 361 Capital runs a behavioural model that forecasts how an analyst’s expectations of stocks’ earnings will rise or fall in the future and invests accordingly. But every now and then, the model goes loopy.
“There are periods of time where it just seems like investors almost prefer losers,” he says.
Riddle quickly realised