Cognitive diversity Scorecard

"People with different political orientations often have fundamentally different views on how the world works, the role of the state, and the drivers of economic growth. A team that is ideologically monolithic may share the same 'blind spots' regarding political risks or regulatory shifts."

"Minority viewpoints are important...because they stimulate divergent attention and thought. As a result, even when they are wrong they contribute to the detection of novel solutions and decisions"

"A person who is detail-oriented may be better at identifying errors in a financial model or inconsistencies in a company’s reporting, whereas a high-level thinker may be better at identifying long-term trends or disruptive threats."

"Personality traits like extroversion and introversion determine how people interact. Introverts often provide the 'reflective' balance to the 'active' nature of extroverts."

"A person with a short-term orientation may be more attuned to immediate market catalysts or quarterly earnings surprises, whereas a long-term thinker may be better at identifying structural shifts or 'slow-burning' risks that the market is currently ignoring."

"Bring together optimistic and skeptical dispositions is essential for a robust investment process. It ensures that the 'bull case' and the 'bear case' are both argued with equal conviction."

"A person with a quantitative background may focus on data and numbers, whereas someone with a qualitative background may focus on the quality of a management team or a company’s culture. Both are looking at the same company, but they are processing the information in different ways."

"A team of risk-tolerant individuals may be prone to excessive risk-taking, over-concentrating in a few positions, or ignoring 'tail risks'. Conversely, a team of risk-averse individuals may be too diversified, resulting in 'closet indexing' where they fail to generate alpha because they are afraid to deviate from the benchmark."