A Wall Street investing guru reveals his 4-part strategy for finding and exploiting market inefficiencies — and making a bundle in the process

, has formulated a way for investors to capitalize on market inefficiencies. And his analysis boils down to a simple acronym: BAIT.

Think about the asset bubbles of the past. Fear-of-missing-out, greed, and envy were the most powerful drivers of asset pricing, not underlying business fundamentals. Only a tiny portion of price movement can be attributed to changes in fundamentals. After all, 10% shifts in business operations rarely happen, but investors have no problem lopping 10% off a stock price. When fundamentals and valuation divert, investors can capture an edge.

Theoretically, investors should have access to the same information. But the ones who can separate what's important from what's irrelevant — and reflect that analysis in their portfolio — will be more successful.

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