New York-based hedge fund firm Sang Lucci Partners Capital has sent a group of its traders to Los Angeles last month to have their brains examined in an effort to improve trading methods.
Bloomberg Businessweek reported that the 26 participants—who included Sang Lucci partners and traders--spent two 90-minute sessions doing simulated buying and selling while undergoing an electroencephalogram, or EEG, to record their brains’ electrical activity.
Sang Lucci partner Charlie Bathgate explained to the news outlet that understanding a trader’s brain can unlock potential investment gains.
“[Traders’] whole profit and loss statement is being determined by their mind, and yet they have no way to analyze it,” he said. “there’s this big gap here. So we’re trying to fill that a little bit.”
Sang Lucci was formed in 2010 by Anand Sanghvi as a website dedicated to education traders. Two years later, Sanghvi raised capital from family and friends for a fund that currently manages approximately $2 million in capital.