Portfolio Strategy – Improving Alpha:

Improving Alpha: Gerd Gigerenzer’s Case for Heuristics in Investing

By Improving-Alpha | February 17, 2026

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Albert Einstein is often quoted as stating, “The intuitive mind is a sacred gift and the rational mind is a faithful servant.” As a society today, in this unstable world, you need both to accelerate success while avoiding defensive decision-making. Instead of taking up that defensive position, have the courage to go with more robust yet easier strategies blending data and intuition together.

There’s no better guest to help us navigate the field of heuristics and how institutional investors can apply psychology today than Gerd Gigerenzer , Director Emeritus, Max Planck Institute for Human Development. In this latest Improving Alpha discussion, Gerd tells us why he gave up his life as a musician and chased his dreams in the field of academia, eventually writing several books, such as:

Gut Feelings: The Intelligence of the Unconscious
Risk Savvy: How to Make Good Decisions
Simple Heuristics That Make Us Smart
How to Stay Smart in a Smart World
Calculated Risks: How to Know When Numbers Deceive You

Additional discussion points in this podcast include:

What is the purpose of the Max Planck Institutes around the world, and how can they impact the lives of those in the financial space?
What is a heuristic?
Quarterly Reporting: Aswath Damodaran recently expressed his opinions on quarterly reporting. What does Gerd believe when it comes to the value of quarterly reporting for companies today?
The concept of volatility and what it means today for those working in finance.
Why did Harry Markowitz avoid using his own Nobel-winning prize method in choosing his own investments in retirement, favoring a simple heuristic that is equal to 1/N?
What is the Turkey Illusion, and why can this be applied to shocks like the financial crisis of 2008 and the Great Depression?
How can AI be leveraged in both an uncertain world and a more narrow/stable situation? Are there different applications?
And more.

Resources:

Connect with Gerd Gigerenzer:

Connect with Michael Oliver Weinberg:

About Our Guest:

Gerd Gigerenzer is Director Emeritus at the Max Planck Institute for Human Development and founder of the Harding Center for Risk Literacy. A former professor at the University of Chicago, he is internationally known for his research on decision-making under uncertainty, heuristics, and statistical literacy. His work challenges conventional ideas of optimization and highlights how simple, well-designed rules can lead to better outcomes in complex, uncertain environments.

The information covered and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of Vidrio Financial, and/or our host, Michael Oliver Weinberg. The Content has been made available for informational and educational purposes only. The Content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.

The release date may not correspond to the recording date.

Improving Alpha: Devana Cohen on Driving Investment Conviction for Improved Endowment Portfolio Performance

By Improving-Alpha | June 30, 2025

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Can prior career opportunities help you discover your true potential in institutional investing even if they’re not related to the finance sector? Maybe it reveals that ideal ‘a-ha’ moment that sets your future course.

In our latest episode of the Improving Alpha podcast, we welcome Devana Cohen, Chief Investment Officer of the United Jewish Appeal Federation, (UJA) to discuss her three-pronged mission approach, which manages $2 billion in assets. Listen in as Devana shares her journey from modeling electrons flowing through silicon as a semiconductor R&D analyst to careers in finance at The Ford Foundation, California Endowment, and then landing at the UJA.

Host Michael Oliver Weinberg and Devana Cohen cover the following key takeaways and more:

How are current geopolitics impacting the UJA’s mission today.
The prevailing thoughts on value investing strategies at the UJA and how Devana adds downside protection to the portfolio.
The engineering mindset and how her process-oriented approach helps in manager selection, especially when thinking about ESG.
Given the recent U.S. administration changes, how does the UJA view ESG investments, like carbon capture and sequestration.
Does distressed credit offer attractive yields for the UJA portfolio today, and could Europe offer some unique options.
Could there be less demand for venture capital in the future which will level the playing field and provide more early-stage opportunities.
Real thoughts on co-portfolio managers and the challenges that exist with this model.
And more!

Connect with Michael Oliver Weinberg:

Connect with Devana Cohen:

About Our Guest:

Devana Cohen is the Chief Investment Officer for the UJA-Federation of New York’s Endowment and Retirement Plans. Before joining UJA-Federation of New York in 2013, Ms. Cohen spent five years managing public market investments at the Ford Foundation and The California Endowment. Ms. Cohen was an Asset-Liability Manager at Toyota Motor Sales, where she also served as a member of the investment team that managed the pension plan assets. Before starting a career in investments, she was a Design Engineer developing semiconductor devices for International Rectifier. Ms. Cohen graduated from the University of California at Berkeley with dual BS degrees in Chemistry and Chemical Engineering and earned an MBA from the UCLA Anderson School of Management, specializing in Finance and Entrepreneurial Studies. Ms. Cohen is a CFA charterholder.

The release date may not correspond to the recording date.