contents -- About the author -- Preface -- Emotional crowds and Behavioral data investors -- Power of releasing and harnessing -- a Professional journey -- reluctantly rejecting MPT -- a Personal journey -- About this Book -- Acknowledgements -- Executive summary -- chapter 1: Behavioral Portfolio Management -- The triumph of reality over rationality -- My BPM transformation -- evolving Market Paradigm -- Behavioral Portfolio Management -- the emotional crowd, BDI interPlay -- the Basic Principles of BPM -- Basic Principle i: emotional crowds dominate pricing -- Basic Principle ii: Behavioral data investors earnsuperior returns -- Basic Principle iii: investment risk is the chance ofunderperformance -- summarizing the three Basic Principles -- section 1: the cult of emotion -- chapter 2: emotional Brakes -- investor cognitive errors -- Myopic loss aversion (Mla) -- social validation -- stories -- anchoring -- availability bias -- representativeness -- wysiati -- Peak-end memory -- Personal experience trumps data -- substituting an easier question for a harder one -- fallacy of information -- fallacy of control -- Mental accounting -- framing -- Phantastic objects -- an aBsence of rational decisions -- chapter 3: randomness -- randomness or logical explanation? -- uneasy roommates: randomness and the human mind -- challenging tail events -- Mental accounting strikes again -- the law of small numbers -- is formal education necessary? -- 60/60/60 -- chapter 4: cult enforcers -- catering versus Mitigating -- MPT: the CE toolkit -- faux due diligence -- the lawyers Pile on -- it is hard to leave the cult -- chapter 5: how the cult of emotion invests -- the investing habits of a coean -- developing investment strategy -- intuition and anecdotal inforMation -- Purchasing "Brand" stocks -- current economic events -- holding More than 20 stocks.

overly focusing on deBt -- holding a stock until it gets Back uP to the Price you Paid for it -- the Price Paid -- Building a long-term portfolio -- volatility and correlation -- eliMinating tail events -- asset allocation Models -- exiting the Market when volatility increases -- choosing an investment manager -- Past PerforMance -- a fund's "Brand" -- large active equity funds -- volatility, Beta, Max drawdown -- style drift and tracking error -- chapter 6: forty years in the desert - the disappointing tale of MPT -- the rise of MPt -- those annoying anoMalies -- the decline of MPt -- rejecting the world rather than rejectingthe ParadigM -- let the transition Begin -- section 2: leaving the cult of emotion -- chapter 7: releasing emotional Brakes: a 12-step Program -- step 1 -- step 2: -- step 3: -- step 4: -- step 5: -- step 6: -- step 7: -- step 8: -- step 9: -- step 10 -- step 11 -- step 12 -- chapter 8: Mitigating emotional costs -- communicating with clients -- the listening model -- the planning model -- i'm the boss model -- feathering in investments -- Mountain chart ProBleMs -- randomness disguised -- the return histograM advantage -- the self-healing return distriBution:Matched returns -- Mitigating eMotional costs -- chapter 9: style grid Performance drag -- a leaderless stampede -- style drift and PerforMance -- Bizarre tale of the style grid -- chapter 10: diversification: applying Bubble wrap -- short-term volatility -- infatuation with alternatives -- stock Portfolio diversification -- can BuBBle wraP Be Beneficial? -- gloBal Mush -- chapter 11: the volatility trap -- Market volatility -- conteMPoraneous Market volatility and Marketreturns -- fighting the urge to Bail -- staying the course -- chapter 12: will true risk please stand up! -- failure of CAPM -- false hoPe of factor Models -- volatility and risk are not synonyMous.

Measuring underperformance -- athena Pure Portfolio: an exaMPle -- Building long-horizon wealth -- sources of investMent risk -- volatility and advisor/fund Business risk -- toward a Measure of risk -- section 3: Becoming a Behavioral data investor -- chapter 13: investment strategy -- importance of investment strategy -- essence of strategy -- equity strategy framework -- strategy stock Pools -- Measuring strategy consistency -- central role Played By strategy stock Pools -- specialist versus generalist -- strategy consistency and style drift -- Measuring strategy conviction and rating funds -- strategy-Based investing -- chapter 14: the Best (and worst) ideas of equity Managers -- stock Picking skill -- Behavioral factors versus information Mosaic -- why then do Managers underPerforM? -- industry-driven over-diversification -- identifying Best idea and worst idea stocks -- social validation and oPinion aggregation -- chapter 15: Building an equity strategy -- strategy elements -- anomaly research -- Building an equity strategy -- Building the Pure strategy -- chapter 16: the Power of dividends -- dividend yield, returns and volatility -- dividends, Market CAP and taxes -- dividends as a Measurable and Persistent Behavioral factor -- the Power of dividends -- chapter 17: Behavioral Market timing -- expected Market returns -- sentiMent index (si) -- strategy Market BaroMeters -- an initial eyeBall test -- Predictive Power of Behavioral Measures -- variation in expected Market returns -- Behavioral Market tiMing -- iMPleMenting Behavioral Market tiMing -- chapter 18: what future may come -- will these opportunities last? -- rational to eMotional -- style grid and closet indexers -- dr. seMMelweis: a cautionary tale -- the future is here -- appendix: the Bucket Model - a case study -- strategy allocation -- 1. your oPerating Portfolio.

2. your caPital aPPreciation Portfolio -- 3. your strategic Portfolio -- Bibliography -- supplemental Bibliography -- index.