Measurable and persistent behavioral factors are emerging as a new source of information with the potential to transform how we think about portfolio management and to dramatically improve portfolio performance. C. Thomas Howard, CEO and Director of Research at AthenaInvest, discusses how Behavioral Portfolio Management (BPM) is the next step in a developing paradigm shift away from modern portfolio theory and toward behavioral finance. Howard explains how BPM looks beyond investors’ cognitive errors and focuses on how to harness price distortions driven by emotional crowds to create superior portfolios.