Behavioral Considerations in Active Equity Investing

As markets have evolved, behavioral finance has gained prominence in understanding investor decision-making processes. Active equity investing strives to outperform the market through informed decisions and strategies. Consider the role of behavioral biases in such investments.

Discuss the potential impact of overconfidence and anchoring on an active equity manager's portfolio decisions. How can these biases affect performance and lead to deviations from the manager's investment strategy? Additionally, suggest ways to mitigate these behavioral biases in active equity management.