Kentor asset management - principles

1. economics establishes that changes in the supply and demand relationship determine the future direction of prices in any well-regulated free market, regardless of asset class.
2. behavioral finance provides strong evidence that the “hard wiring” of the human brain is poorly suited to modern financial markets, causing investors to make poor decisions based on basic instincts (“safety in numbers,” “fear of heights,” “loss aversion,” “pride and regret,” etc.)... and hence the value of contrarian analysis.
we believe that our disciplined approach to evaluating and monitoring these indicators is crucial to keeping our investors on the right side of the market and determining which categories are likely to outperform.