02.24.2025

Morningstar Allies with Essentia Analytics

02.24.2025
Morningstar Allies with Essentia Analytics

Morningstar, a leading provider of independent investment insights, has announced a strategic relationship with Essentia Analytics, a leading provider of behavioral analytics and decision-making insights for investment professionals, to bring Essentia’s Behavioral Alpha Score to the Morningstar Direct Platform.

The Behavioral Alpha Score is a quantitative measure of fund manager decision-making skill that spans seven types of decisions: Picking, Entry Timing, Scaling In, Sizing, Size Adjusting, Scaling Out, and Exit Timing. Essentia’s research demonstrates a link between the Behavioral Alpha Score and predicted future fund performance.

“This strategic relationship with Essentia represents Morningstar’s continued commitment to providing independent, transparent data that empowers investors in today’s ever-evolving market,” said James Rhodes, president of the Direct Platform. “By adding the Behavioral Alpha Score to the Direct Platform, Morningstar aims to provide deeper insights on the true drivers of investment performance, helping investors make more informed decisions.”

“Morningstar has long been a trusted name in the investment community, and their recognition of behavioral analytics as a key advancement in manager research speaks volumes about the industry’s evolution,” said Clare Flynn Levy, CEO of Essentia Analytics. “We’re excited to see our Behavioral Alpha Score reach a broader audience through this relationship, ultimately enabling investors to make more confident decisions about the managers to whom they allocate capital.”

Source: Essentia Analytics

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