Behavioral Funds

Mutual funds in which the manager selects stocks based upon behavioral finance tenets.

Donnie firmly believes that, when investors are experiencing euphoria, they will bid up stock prices, while the opposite is true when they are feeling angst. To capitalize on this theory, he started a Twitter-based behavioral fund whereby he buys/sells stocks based on the general tone of 500 accounts he follows. Donnie's fund, like most behavioral funds, is underperforming the market, but that's way better than, say, trying to govern an entire nation using similar tactics.