There are strong behavioural biases that attract investors to complex strategies. We know that outperforming the market is hard, so it makes sense that it takes a complex approach to do so. It’s difficult to separate skill from luck, so complexity serves as a mental shortcut to help identify competence. Complex approaches to investing include thematic investing, market timing and hedge funds, all of which carry an air of sophistication. However, introducing complexity will, on average, diminish the odds of success and detract from returns. To make better financia...