Blue Kayak Partners, founded by Jon Pinkston, provides non-discretionary investment research to Auxano Advisors in areas such as asset allocation, manager review, and macro analysis. Blue Kayak’s approach is based on the philosophy that because global capital markets are inefficient, and prices do not always reflect fair value, excess returns can be generated. Investor psychology — particularly overconfidence, pride and the tendency to avoid regret — explains not only the oscillation between fear and greed but also the propensity to avoid value stocks, to sell winners too early, and to hold onto losing positions. Simply put, investors often under- or overreact to new information. Blue Kayak believes that an intelligent combination of quantitative measures and informed judgment may provide opportunity for achieving superior investor returns through a systematic discipline to engage the periodic irrationality of markets.