The Trick to Bragging in a Job Interview

It is a classic problem for entrepreneurs, job seekers and, well, anyone: If you brag about your accomplishments, you seem more competent—but less likeable.

The solution? Add a dash of playfulness when discussing your talents.

A team of researchers have found that “humourbragging”—referring to your accomplishments through a veil of humour—allows people to play up their skills without coming across as smug or conceited. And that makes them more likely to get hired or get their pitch accepted.

“The self-enhancing humour helps them be seen as confident without sacrificing likability,” says Jieun Pai , an assistant professor at Imperial College London who led the research .

Laughs get results

The researchers used a series of studies to test the impact of what they called humourbragging. In one instance, they sent out two résumés to 345 companies—but one version of the résumé added a dash of self-promotional humour instead of being purely serious: “The more coffee you can provide, the more output I will produce.” The résumés with the joke got an email or a callback by 156 companies, versus 125 for the others.

Another study got similar results when looking at humorous bragging on the first four seasons of “Shark Tank”—people who used humour to highlight their accomplishments were more likely to get funding than others.

In another case, the researchers found that study participants were more likely to hire a pastry chef who used some levity in selling themselves. One candidate described making a soccer-themed cake for a boy’s fifth-birthday party and capped off the story by saying they got the biggest tip the bakery has ever seen. The baker who was the hiring favourite told the same story, including the part about the tip, but ended up by saying, “I am just glad that I only had to make the soccer ball, not actually kick one.”

Pick your jokes wisely

People need to be cautious, though, when using humour to sell themselves, Pai says. Self-deprecating humour without any bragging at all, or humour intended to belittle others in any form, doesn’t have the same positive impact that humorous bragging does, according to the research. “We sometimes use self-deprecating humour, but that backfires and downplays your achievements,” she says. “It doesn’t help you be seen as more competent.”

Wall Street’s hottest trade has gone ice cold.

For years, it paid off to buy stocks that were rising in price—and bet against struggling shares. The momentum trade was especially profitable this year, as investors piled into hot stocks including Micron Technology, Nvidia, Advanced Micro Devices and other artificial-intelligence darlings while wagering against those likely to be hurt by the embrace of AI.

The S&P 500 Momentum Index soared 44% in the second quarter, its best quarterly performance on record, and it surged 133% over the past five years, nearly double the broad market’s performance.

Mega funds and rookie investors alike piled into the trade, some using leverage and options contracts in an effort to amplify their returns, propelling the underlying shares higher.

“It is a self-fulfilling prophecy,” said Matthew Tym, managing director at Cantor Fitzgerald, of the trade.

Suddenly, the trade is a loser. The momentum index has tumbled more than 9% since July 1, lagging behind the S&P 500’s 2.8% gain. The index—which tracks stocks in the S&P 500 based on a “momentum score”—is on track for the biggest quarterly underperformance in 25 years. July was the second-worst month for the momentum trade in around 40 years, according to Bank of America estimates; the only month worse was April 2009, in the teeth of the global financial crisis.

Hedge funds that bought momentum shares while shorting low-momentum stocks suffered even more. At the same time, a basket of the most popular stocks held by hedge funds tracked by Goldman Sachs recorded its biggest one-month underperformance in July relative to the S&P 500 in more than 20 years, according to the bank’s analysts.

Momentum trading is based on a rather simple observation: Investments that go up tend to keep outperforming; those that underperform often remain laggards. This kind of trading might seem too simple a stock-picking strategy to work. Yet it often has.

“For decades, it didn’t take a lot of sophistication to run a momentum strategy and make a decent living at it,” says Agustin Lebron, senior researcher at EquiLibre, a trading firm.

Part of the reason: It takes a while for corporate and other information to spread to various investors, so they slowly build positions, producing buying momentum.

“A huge pension fund can’t flip around its positions in a day,” says Lebron. “Behavioral biases also account for some of the effect, as well—people tend to sell their winners too early and hold losers too long.”

Fans of the strategy point to the human tendency to extrapolate from past results—and chase investment returns—noting that momentum patterns have been evident in markets for decades, even centuries. They also say that some of the worst months for momentum strategies are during longer periods of outperformance.

Some have been doing the trade by buying the strongest investments in a sector while shorting the weakest; others lean in to rising markets or asset classes. Still others use a quantitative approach or turn to banks or others who sell ways to make distinct wagers on momentum as a “tradable factor” or a “thematic basket.”

The fans remain believers. “Any strategy has disappointing periods,” says Antti Ilmanen, global co-head of the portfolio solutions group at AQR Capital Management.

The surge in Moderna and other biotech stocks helped crush the momentum trade. These shares were among the most heavily shorted in recent years, but positive news on a cancer vaccine from Moderna and Merck sent those stocks flying, crushing some quant and other hedge funds. Moderna is up around 150% so far this month.

These traders had an especially rough day on Aug. 19, which Goldman Sachs told its clients was the worst day for “systematic long-short managers” in more than two years. About half of the losses were because of momentum trades, the bank said.

Some traders have begun to short, or bet against, the very stocks that propelled the momentum trade earlier this year. Net short positions in futures tied to the Nasdaq-100 index among speculators recently climbed to some of the highest levels of the past two decades, according to data from the Commodity Futures Trading Commission.

The about-face is a sign of how markets have become more treacherous for investors, even as indexes keep climbing. Part of the issue: the recent meltdown of Situational Awareness, a hedge fund that had piled into some of the most popular momentum shares, including chip stocks. After a period of market tumult, Nvidia shares rocketed almost 9% after its earnings, showing how quickly sentiment can shift.

Some investors say the run-up in share prices driving tech stocks higher reminds them at times of the dot-com frenzy decades ago.

Mike Ogborne, the founder of San Francisco-based Ogborne Capital Management, said he has grown more cautious on technology stocks and is keeping more of his portfolio in cash than he typically does.

And he is nervous about the surge in spending by technology giants and quarterly capital expenditures that keep rising.

“It is a little bit like Cinderella and the clock striking midnight. You don’t know when midnight is going to come around,” Ogborne said. “They don’t send a memo around telling you when the capex cycle is over.”

The Trick to Bragging in a Job Interview

‘Humourbragging’ can make you seem less conceited when you’re boasting

Laughs get results

Pick your jokes wisely

Wall Street’s hottest momentum trade has reversed sharply, as former winners tumble and heavily shorted stocks surge.