Behavioral Biases in Active Equity Investing

As an equity portfolio manager, you are tasked with evaluating active equity strategies to enhance portfolio performance. Recent studies have shown that behavioral biases can significantly impact both market pricing and investment decision-making. Describe two specific behavioral biases that can affect active equity investing, and provide examples of how they might manifest in an investment manager's decisions.

In your response, be sure to discuss how these biases can lead to suboptimal investment choices and the potential implications for the overall portfolio performance.