Herding Explain why/how the average investor via herding - can lose money in a mutual fund investment that is significantly up (hint: PBHG Core Growth)? With respect to mutual fund investing, discuss the link between chasing strong performance and the trend NOT being your friend. How does Bikhchandani, Hirshleifer and Welchs theory of information cascades shed light on why investors consistently overreact? How does private information factor in to the argument at these times of overreaction? How does the media lead, if at all, to herd behavior?