The Behavioural Finance Lab — Pricing the Anomalies

Three-round MBA-core decision simulation: defend three behavioural finance anomalies (PEAD, value, momentum) and a USD 240M allocation request to a sceptical Investment Committee at Cordillera Capital Advisors. Diagnose PEAD net drift on the LATAM sample (friction stack, short-side coverage), design the value-momentum-PEAD portfolio (correlation-aware sizing), and defend the structural reframe (PEAD active plus value/momentum passive) against data-mining and factor-redundancy challenges.