I use the word arbitrage because we're not talking about different markets in different geographies. We're talking about different markets that exist in different people's minds. If I can fundamentally understand, and believe in, a market more clearly than any other investors then my equation can change in ways that give me an advantage.

Hardcore passive management enthusiasts overemphasize the overarching pull toward efficiency and mistake the general trend for the Gospel Truth. In so doing, they overlook valuable opportunities for return enhancement that are available to behavioral investors. Advocates for traditional active management are quick to point out the behavioral

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