Irrational Capital is an investment research firm quantifying the impact of corporate culture and employee motivation on financial performance. We research and design investment strategies offering exposure to the Human Capital Factor, a direct link between company culture and equity returns. Through cutting edge behavioral economic research on large (and often proprietary) data sets, Irrational Capital captures insights about a critical asset not yet efficiently reflected on a company’s balance sheet. Led by renowned behavioral economist Dan Ariely and his co-founder David van Adelsberg, we seek to transform the often-anecdotal views about the importance of corporate culture into investable and systematic strategies based on what we’ve coined the Human Capital Factor. We enable financial institutions to create investable access to the Human Capital Factor via bespoke investment strategies and financial products.
Purpose
Our core mission is to prove that doing the right thing pays by bringing the Human Capital Factor to the world.
The Human Capital Factor applies workplace behavioral science, financial acumen and deep data science to capture the powerful connection between human capital and stock performance. By understanding company culture and intrinsic employee motivation, we are able to transform these insights into high-returning investment strategies for our partners.
We are the first firm to quantitatively capture the lift that strong corporate culture has on a company’s stock price in an investable way. By uncovering the capital in human capital, we help create investment options that prove definitively that doing the right thing pays.
Alignment with Guiding Principles
At the Council for Inclusive Capitalism, we invite companies of all sizes, industries, and geographies to champion our Guiding Principles for Inclusive Action and demonstrate how they contribute to meaningful change. To ensure alignment with our principles, our members are assessed by at least one reporting body, sustainability-related certificate, benchmark, rating agency or similar organization.
